Luberef signs contract to expand Yanbu facility

Luberef signs contract to expand Yanbu facility

Jeddah, SAUDI ARABIA: Saudi Aramco Base Oil Company (Luberef) has announced the signing of an Engineering, Procurement and Construction contract with PETROJET Co. for the expansion of its Yanbu facility (Growth II).

Covering the second phase of development, the Growth-II Expansion Project seeks to increase the Yanbu facility’s base oil production capacity to approximately 1.3 million metric tons per year by 2025. Additionally, the contract will further enable Luberef to flexibly produce Group-II and Group-III base oils based on market demands.

Luberef has initiated the engineering and construction agreement with PETROJET to increase the production of Group-II and introduce Group-III base oils, leveraging the improved capacity created by the project.

“We are proud of this agreement as it allows us to strengthen our production capabilities and grow in cohesion with shifts in the base oil industry,” said Tareq Al-Nuaim, President and CEO of Luberef. “Globally, Group-III base oil prices have maintained a steep premium in comparison to Group-I and Group-II prices over the past year in response to steady supply and rising demand. Through this project, we are proud to enhance our Yanbu Facility, process more products and support the Kingdom’s economic growth as a result.”

PETROJET is one of the largest full-service construction