January 2007

Trends and Resources

HP Impact: HPImpact: Saudi Arabia switches some feedstock from natural gas to oil

In a sign that gas availability remains problematic, Saudi Arabia has decided to run its independent power project at Ras al-Zour on crude oil, rather than natural gas. This is described as a "retrogr..

Weirauch, Wendy, Hydrocarbon Processing Staff

In a sign that gas availability remains problematic, Saudi Arabia has decided to run its independent power project at Ras al-Zour on crude oil, rather than natural gas. This is described as a "retrograde step reflecting limited natural gas availability," according to an analysis from Global Insight Inc. The analysis says that Saudi Arabia has been reticent about discussing domestic gas shortages, after heavily promoting its downstream and petrochemical sectors to foreign investors. Rather than wait for new supplies to come onstream, either from Saudi Aramco projects or from foreign investor projects, the government has decided to shift to oil and oil products where possible to enable cap

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