1. The SEC Power Forum Eng. Salah Bahobail
Session II: Economic Impact of expanding the Local Power Capabilities
Eng. Salah Bahobail
Director, Economic Planning Department
Royal Commission for Yunbu

2. Royal Commission for Jubail and Yanbu Royal Commission At Yanbu
Nationalizing industries related to water desalination and major Saudi industries Initiative
SEC Power Forum - Riyadh, May 11,2013

3. Contents Global Facts & Figures Kingdom Facts & Figures
Investment Opportunities
Nationalization Initiative.
“Desalination and Major industries Park at Yanbu Industrial City”.

4. Global Desalination Facts & Figures
The demand for desalination capacity globally is projected to double by 2016.
Saudi Arabia is the #1 in desalination capacity in the world.
15,988 plants in operation in the world
244 plants under construction
2011 = 66.5 million cubic meters per day
2016 = 132 million cubic meters per day
Desalination Capacity
Saudi Arabia
USA
UAE
Spain
Kuwait
China
Japan
Qatar
Algeria
Australia
Source: IDA 2010.

5. Desalination Investment 2010 - 2016
The global desalination industry requires SR 393billion ($105 b) in capital investment from 2010 to 2016.
% (~$57.5 billion) of this investment will be directed toward the MENA region.
The Kingdom represents 18% of the world’s desalinated production.
SWCC plans to invest SR133 b. ($35 billion) in next decade.
المصدر: IDA 2010

6. Global Desalination Facts & Figures
There are 115 countries that have plants to desalinate water.
SWCC capital investment in 2012 is SR15.5b ($4.1 billion).
Yanbu- Medinah plant under construction cost is $1.05 billion.

7. Kingdom Desalination Facts & Figures
A total of 50% of all drinking water in the Kingdom comes from desalination.
The Kingdom has the world’s highest water consumption per capita – more than 250 liters per person per day.
Water demand is rising at the rate of 7% per year.
The Kingdom has more than 35 desalination plants located in 16 cities.
The amount of energy used for desalination is more than 50% of the total production cost.
Many of the Kingdom’s water plants built in the 1970’s are nearing the end of their useful work life
Source: The Oil & Gas Year Saudi Arabia 2012; SWCC.

8. Desalination Industry Requirements
There are 7 major products, services and suppliers required to support the desalination industry.
Desalination Industry
1. Chemicals
2. Component Manufacturers
3. Tubing & Pipes
4. Membranes & Pressure Valves
5. Instruments & Control Systems
6. Treatment System Suppliers
7. Water Storage Tanks

9. Spare part market in Kingdom
Some studies estimate that the size of the market for specialized materials and spare parts for desalination and major companies in kingdom exceed SR 200 billion annually.

10. Investment Opportunities in SWECC
Saudi Arabia is among the top countries with the appropriate environment for investment where all key factors for investment are as follows:
1 – Governmental support.
2 - Financial support.
3 – Strategic location.
4 – Available workforce.

11. Investment Opportunities
Mechanical
Electrical
Chemical

12. Mechanical Opportunities
Mechanical opportunities represent the largest share of other opportunities because of the nature of the production equipment of water and electricity.
Mechanical opportunities include the following:
1 - pumps and parts.
2 - valves and parts.

13. Mechanical Opportunities

14. Investment Opportunities
Mechanical
Electrical
Chemical

15. Electrical Investment Opportunities
Electrical opportunities include the following:
1- Oil and dry transformers.
2- Electric motors.
3- Switchgear.

16. Electrical Opportunities

17. Investment Opportunities
Mechanical
Electrical
Chemical

18. Chemical Investment Opportunities
Used for a number of chemical products in the various plants and numbering about 64 products and most of them are imported from outside the Kingdom.
The annual consumption of chemicals
SR 133, 646, 306

19. The annual consumption rate of the most consumed chemicals (tons / year) by SWCC only

20. The annual consumption rate of the most consumed chemicals (tons / year) by SWCC only

21. Cost of spare parts and chemicals for the year 2012 (in millions of SR) by SWCC only

22. Nationalization Initiative Partners
Saline water conversion corporation
Saudi Electricity company
Ministry of Water & Electricity
Power and water utility company for J&Y (MRAFIQ)
SABIC
Saudi Arabian Mining Company
Saudi Aramco
Industrial cluster
Ministry of petroleum & minerals
Royal commission for yanbu

23. Nationalization Initiative
The Initiative is based on:
Strategic procurement concept.
Actual Market data.
Actual growth data.
Nationalization Incentives.

24. Nationalization Initiative
The partners have prepared a program to collect and list economically viable for industrialization spare parts.
Identified five groups for common template :
Pumps
valves
Motors
Gauges
Bearing
An economic feasibility studies will select the top 100 industries as first phase to be nationalized in Yanbu Industrial City.

25. RC-Yanbu Desalination Park
RC-Yanbu has set aside a prime industrial area to
support “ the desalination Park”.

26. RC-Yanbu Desalination Park
Several of Yanbu’s existing industries are positioned to contribute to the desalination industry.
Chemicals:
Cristal
Prime Basic Chemicals
Jalal A-Sayed Factory
Mechema Chemicals International
Nalco Saudi Company
Tubing, Pipes & Metal Processing:
Saudi Hepco
Al-Altoun Factory for Steel
Yanbu Steel Co.
Al-Yusr, Townsend & Bottum
Saudi Belleli Heavy Industry Ltd.
Olayan Descon Industrial Co.
Shairco Fiber Glass
Tarik Alzahid Aluminum
Saudi Superlit Co.
Valves:
Saudi Fal Company Ltd.
Youssef Zahran Engineering
Desalination Industry
Chemicals
Component Manufacturers
Tubing & Pipes
Membranes & Valves
Instruments & Control Systems
Treatment System Suppliers
Water Storage Tanks
Potential Opportunities include:
Components Manufacturers
Instruments & Control Systems
Treatment System Suppliers
Membrane manufacturers
Water storage tanks

27. Nationalization Incentives
RC-Yanbu Offers the option to provide ”Plug & Play” sites.

28. Royal Commission for Jubail and Yanbu Royal Commission At Yanbu
Thank You!
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