DMEA: Luberef signs Yanbu expansion deal

Saudi Aramco Base Oil Co. (Luberef) has announced the signing of an engineering procurement and construction (EPC) contract with Egypt’s Petrojet for the expansion of its Yanbu facility.

The EPC is part of Luberef’s Growth II project which aims to expand the Yanbu facility’s base oil production capacity to around 1.3mn tonnes per year (tpy) by 2025, allowing it to produce more Group II and Group III base oils to meet growing market demand.

Tareq Al-Nuaim, President and CEO of Luberef said: “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.” He added: “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.”