A move by Sadaf to build its own 320MW power plant is a first for Jubail and, indeed, Saudi Arabia.

The project is expected to meet all the energy requirements of the Sadaf complex, the cogeneration plant providing cheap, reliable power and steam for the Sabic affiliate's styrene monomer-2 plant.

The captive power plant is the first of a number under consideration by large Saudi industries.

The project will be carried out using an energy conversion agreement in which Sadaf will provide fuel for the plant and will buy the power from the developer. CMS Energy Corp of the US and its joint venture local partner Al Zamil Group were selected last month as preferred bidders for the project, construction of which is set to begin before the end of this year.

Sadaf officials point out that the scheme will enable the company to buy power at a price considerably lower than the official industrial tariff of 12 halalas ($0.032) per kWh, as charged by Saudi Electric Company.

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

The project is seen as significant for CMS, positioning the company as an important player in the Kingdom's forthcoming private sector power developments.

Today, the Sadaf complex has a combined output of more than 4.7 million tpy of ethylene, ethylene dichloride, MTBE, caustic soda and crude industrial ethanol.

A second styrene plant, for which the cogeneration plant is planned, came onstream last year with an output of 500,000 tpy, bringing total styrene output at the facility to 1.1 million tpy. Styrene-2, as it is known, was built at a cost of $300 million, with construction taking just under two years. The facility made Sadaf the largest single-plant styrene producer in the world.

The first styrene plant was completed in 1986 and is based on Raytheon technology. The plant uses benzene (primarily from Saudi Aramco Shell Refinery) and ethylene, produced from Sadaf's own ethylene unit.

Apart from Sadaf, Jubail's primary industries rely on the major power generation facilities provided by Saudi Electric Company.