The SEC Power Forum

Eng. Salah BahobailDirector, Economic Planning Department

Royal Commission for Yunbu

Session II: Economic Impact of expanding the Local Power Capabilities

Royal Commission for Jubail and YanbuRoyal Commission for Jubail and YanbuRoyal Commission At YanbuRoyal Commission At Yanbu

SEC Power Forum - Riyadh, May 11,2013

1. Global Facts & Figures2. Kingdom Facts & Figures3. Investment Opportunities4. Nationalization Initiative.5. “Desalination and Major industries Park at Yanbu Industrial

City”.

Desalination Capacity1. Saudi Arabia2. USA3. UAE4. Spain5. Kuwait6. China7. Japan8. Qatar9. Algeria10. Australia

15,988 plants in operation in the world

244 plants under construction

2011 = 66.5 million cubic meters per day

2016 = 132 million cubic meters per day

The demand for desalination capacity globally is projected to double by 2016.

Saudi Arabia is the #1 in desalination capacity in the world.

Source: IDA 2010.

IDA 2010المصدر:

There are 115 countries that have plants to desalinate water.

SWCC capital investment in 2012 is SR15.5b ($4.1 billion).

Yanbu- Medinah plant under construction cost is $1.05 billion.

1. A total of 50% of all drinking water in the Kingdom comes from desalination.

2. The Kingdom has the world’s highest water consumption per capita – more than 250 liters per person per day.

3. Water demand is rising at the rate of 7% per year.

4. The Kingdom has more than 35 desalination plants located in 16 cities.

5. The amount of energy used for desalination is more than 50% of the total production cost.

6. Many of the Kingdom’s water plants built in the 1970’s are nearing the end of their useful work life

Source: The Oil & Gas Year Saudi Arabia 2012; SWCC.

There are 7 major products, services and suppliers required to support the desalination industry.

Some studies estimate that the size of the market for specialized materials

and spare parts for desalination and major companies in kingdom exceed

SR 200 billion annually.

Saudi Arabia is among the top countries with the appropriate environment for investment where all key factors for investment are as follows:

1 – Governmental support.2 - Financial support.3 – Strategic location.4 – Available workforce.

- MechanicalMechanical

- ElectricalElectrical

- ChemicalChemical

• Mechanical opportunities represent the largest share

of other opportunities because of the nature of the

production equipment of water and electricity.

• Mechanical opportunities include the following:

1 - pumps and parts.

2 - valves and parts.

- MechanicalMechanical

- ElectricalElectrical

- ChemicalChemical

• Electrical opportunities include the following:

1- Oil and dry transformers.

2- Electric motors.

3- Switchgear.

- MechanicalMechanical

- ElectricalElectrical

- ChemicalChemical

• Used for a number of chemical products in the

various plants and numbering about 64 products and

most of them are imported from outside the

Kingdom.

• The annual consumption of chemicals

SR 133, 646, 306

020406080

100120140160180

MECHANICAL CHEMICAL ELECTRICAL INSTRUMENT

170134

40

20

Saline water conversion corporation

Saudi Electricity company

Ministry of Water & Electricity

Power and water utility company for J&Y (MRAFIQ)

SABIC

Saudi Arabian Mining Company

Saudi Aramco

Industrial cluster

Ministry of petroleum & minerals

Royal commission for yanbu

The Initiative is based on:

Strategic procurement concept.

Actual Market data.

Actual growth data.

Nationalization Incentives.

• The partners have prepared a program to collect and list economically viable for industrialization spare parts.

• Identified five groups for common template :1. Pumps 2. valves 3. Motors4. Gauges5. Bearing

• An economic feasibility studies will select the top 100 industries as first phase to be nationalized in Yanbu Industrial City.

RC-Yanbu has set aside a prime industrial area to support “ the desalination Park”.

Several of Yanbu’s existing industries are positioned to contribute to the desalination industry.

Chemicals:

• Cristal

• Prime Basic Chemicals

• Jalal A-Sayed Factory

• Mechema Chemicals International

• Nalco Saudi Company

Tubing, Pipes & Metal Processing:

• Saudi Hepco

• Al-Altoun Factory for Steel

• Yanbu Steel Co.

• Al-Yusr, Townsend & Bottum

• Saudi Belleli Heavy Industry Ltd.

• Olayan Descon Industrial Co.

• Shairco Fiber Glass

• Tarik Alzahid Aluminum

• Saudi Superlit Co.

Valves:

• Saudi Fal Company Ltd.

• Youssef Zahran Engineering

Potential Opportunities include: Components Manufacturers Instruments & Control Systems Treatment System Suppliers Membrane manufacturers Water storage tanks

RC-Yanbu Offers the option to provide ”Plug & Play” sites.

Royal Commission for Jubail and YanbuRoyal Commission for Jubail and YanbuRoyal Commission At YanbuRoyal Commission At Yanbu

WWW.rcjy.gov.sa