Arabia’s capital city is preparing to utilize gas, rather than oil,
to generate electricity and to facilitate industrial production from
the beginning of next year.
move is part of the government’s efforts to expand its gas network
to the Central Province and other parts of the country. The project,
according to Sulaiman Muhammad Al-Kholaify, chairman of the Gas
Distribution Company, will cut the cost of fuel by 80 to 90 percent
compared to the value of gas presently used by industries and
electricity plants throughout the city, and reduce both maintenance
charges and environmental pollution.
will also lead to the establishment of new factories in the city, as
it reduces the cost of production,” he added.
new project comes after Saudi Arabia signed accords with eight
international oil companies on June 3 to develop its gas fields. The
gas deals, to carry out three core ventures in the southeastern,
western and northwestern parts of the country, will bring in a minimum
direct investment of SR75 billion ($20 billion).
present, gas is widely used in the Eastern Province for its
electricity and desalination plants and industries. The availability
of gas at competitive prices will boost industries specializing in
transforming methane, ethane, propane, butane and benzene into value
development of gas also provides good opportunities for local
contractors. The Saudi firms, in cooperation with international
engineering companies, will take part in the construction of new
industries either as main contractors or subcontractors for civil,
mechanical, electrical, plumbing, safety, communication, maintenance
and other works.
Doyle Saudi Arabia Ltd., a company specializing in gas projects, is
scheduled to complete the gas pipeline project by the beginning of
next year to supply natural gas to the seventh electricity power plant
and to the industries located in the second industrial city in Riyadh.
The project is estimated to cost SR25 million.
said the project will link the pipeline with Saudi Aramco’s gas
pipeline that comes from the Eastern Province. In the first phase, the
project will benefit 25 factories, he said, and added that more
industries will make use of the facility in the future.
emphasized the importance of using methane gas that is clean and
environmentally friendly and gives high levels of heat economically.
It is used mainly in the iron and steel industries, the building
materials industry and the chemical industries.