Newly written regulations now permit Saudi Aramco to sell power to the Saudi market via state-owned Saudi Electricity Company (SEC), Electricity and Co-Generation Regulatory Authority (ECRA) Governor ‘Abd Allah al-Sheri tells MEES. By 2016 the state-owned oil and gas giant will have excess power capacity allowing it to become a net seller instead of a net buyer. Saudi Arabia will let power generation firms, including Aramco, sell directly to companies, including petrochemical giant SABIC by 2020. Aramco will continue to provide fossil fuels to rival power generation companies.
Saudi Aramco already builds and owns power plants for its own on-site needs and is adding a 3gw plant at Jazan by 2016, which will have a surplus 2.2gw capacity after providing power to its refinery. Aramco is also adding about 2gw of energy efficient cogeneration heat and power plants and has a renewable power department. At present Saudi Aramco produces 2gw of its 3gw need and buys the difference from the SEC. (CONTINUED - 764 WORDS)