Saudi Petrochemical Company (Sadaf) is developing a cogeneration plant at its Jubail facility to meet all the energy requirements of the complex.

Up to 320 MW of capacity is required, and the cogeneration plant will also supply the complex with steam, which will be used primarily for the production of styrene monomer at Sadaf's styrene-2 plant, which came onstream last year.

According to reports, the project will be carried out using an energy conversion agreement, under which Sadaf will provide the plant's fuel and purchase the output from the plant's developer.

Sadaf officials say the scheme will enable the company to purchase power at a price significantly below the official industrial tariff of 12 halalas ($0.032) per kWh charged by Saudi Electricity Company.

Sadaf earlier specified Westinghouse Electric Corporation and General Electric Company (GE), both of the US, and Mitsubishi Heavy Industries of Japan to manufacture the plant's gas turbines.

This will be the first of a number of so-called captive power plants under consideration by large Saudi companies. They will be expected to guarantee a reliable energy source as well as bring down the cost of electricity.

Sadaf is a 50:50 joint venture between Saudi Basic Industries Corporation (Sabic) and Pecten Arabian Company, a subsidiary of the US' Shell Oil Company.

Sadaf is also said to be converting its chlorine production unit from diaphragm to membrane separation technology.

The company has a 200,000 tpy unit using Krupp Uhde's membrane technology and a 400,000 tpy unit using diaphragm technology. The conversion should increase capacity by 15 per cent, according to reports.