Under the amended water and energy conversion agreement (WECA), Petro Rabigh will increase its procurement by 44% in power, 82% in steam and 41% in distilled water for its Rabigh 2 expansion.

The RAWEC is currently expanding its production plant within the Rabigh premises to meet the increased demand.

The financial impact of the agreement will be estimated based on the actual usage of utilities upon operation of the project, the company said.

The agreement will expire in June 2016 when the expansion project is scheduled to commence production.

Located on Red Sea coast, PetroRabigh’s existing plant has a capacity to produce 17 million tons of refined products and 2.4 million tons of petrochemical products annually.

Rabigh Phase II Project will involve expansion of the existing facilities to produce new specialty petrochemical products.

The project will include expansion of the existing ethane cracker, and the addition of a new naphtha reformer/aromatics complex.

Upon completion, Rabigh 2 will produce high value-added derivative products such as ethylene propylene diene monomer rubber, thermo plastic olefin, methyl methacrylate and polymethyl methacrylate.

Last week, the company has secured $5bn financing for the project from Japan Bank for International Cooperation, Public Investment Fund, and a group of 19 financial institutions.

With this investment, PetroRabigh is expected to become one of the world’s largest combined refinery and petrochemical complexes.