Saudi Aramco to finalize Jazan refinery’s first unit by year-end: report

State-owned Saudi Aramco is expected to complete the first major unit of the Jazan refinery by the end of this year, but refining operations will begin a year later when all other units are finalized, Reuters reported on Wednesday, citing unnamed sources familiar with the matter.

The refinery is likely to be fully operational in early 2019.

The facility was originally scheduled to be completed in late 2016, but has faced delays due to contractual disagreements and changes in the scope and design, the sources added.

“The target is mid next year for mechanical completion (of the rest of the complex) but the expectation is third or fourth quarter of 2018,” said one of the sources.

In its 2016 annual review released in July, the Saudi oil giant said that pre-commissioning was scheduled to begin in mid-2018, following the completion of the marine terminal.

The 400,000 barrels per day refinery complex is composed of several units, including amine regeneration, hydrocracker and hydrotreater, naphtha and aromatics units, utilities and tank farms.

When complete, the facility will process heavy and medium crude oil into around 75,000 barrels per day of gasoline and 250,000 bpd of ultra-low-sulphur diesel.

Products will also include liquefied petroleum gas, sulphur, asphalt, benzene and paraxylene.