Ruias Owned Essar Projects Inks Deal With MMG
Ruias Owned Essar Projects Inks Deal With MMG
Essar project which is owned by the Ruias has now entered into a deal with the Mohammed Al-Mojil Group or MMG. MMG is one of the biggest Saudi construction service providers and it offers construction services for project development in Jazan. The deal will include the Jazan refinery which produces 400,000 barrels per day. It is expected to fuel economic development in Jazan, Saudi Arabia.
The refinery is also slated to process up to 75,000 barrel gasoline per day along with 250,000 barrels of low sulfur diesel and 80,000 barrel vacuum distillation material. This will provide fuel for the power plants. Essar Projects is a global EPC or engineering procurement and construction contractor with its headquarters in Dubai.
Essar has a massive engineering and procurement division along with expensive fabrication facilities and a huge construction equipment bank. This deal has implications for the alignment of Essar with MMG's restructuring plan and its business model. It will focus on fundamental businesses units of skilled workforce as well as steel fabrication, camping/catering and scaffolding. Essar's goal is to gain operative capacity in Saudi Arabia.
The deal is a collaboration between MMG's capabilities and Essar's experience in putting forth mega schemes. The aim is to develop Jazan and create employment opportunities for the local population there. The aim is to expand MMG's footprint in the Kingdom, according to MMG CEO Stewart Macphail. Alwyn Bowden who is the president and CEO of Essar Projects has also indicated that this deal will offer the company a change to grow in Saudi Arabia which is a key market for it.
The collaboration aims to enhance flexibility and increase manpower and resources to provide excellent services to customers. The Jazan Refinery and Terminal project is aiming to grow the economy in the souther part of Saudi Arabbia by offering 4000 indirect jobs and 1000 direct jobs.
This deal is significant because only 3 other refinery projects of this scale have been commissioned in the world over the past few decades. Essar Projects aims at making inroads in non-renewable energy industries such as oil and has including cross-country pipelines.
Onshore and offshore terminals along with infrastructure are also its focus. While the deal has many positive implications for the development of Jazan, authorities may also consider supplementing these efforts along with renewable energy projects to ensure sustainable development.
Respecting the earth's resources and using them in a disciplined way will have positive repercussions for the future of the world. As new cities are born and people begin the march towards progress and greater development, the call to protect nature and ensure a balance in energy policies should not be disregarded. Humanity's welfare depends upon judicious use and conservation of natural resources.
