Business & Finance Club - Riyadh : Automation technology group ABB said it has won a $20 million contract from Saudi Petrochemical Company (Sadaf) to implement a power factor correction and power management solution at its Jubail manufacturing complex.

As per the deal, ABB will deploy solution to help Sadaf improve its network efficiency and, accordingly, significantly reduce the electricity losses while improving the stability of its power supply.

Owned jointly by Saudi Basic Industries Corporation (Sabic) and Shell Chemicals Arabia, Sadaf was established in 1980 and began commercial operation in 1986.

The company operates from one of the world's largest and most competitive petrochemical complexes in Al Jubail industrial zone on Saudi Arabia's eastern coast.

Sadaf's six, world-scale manufacturing plants produce over 4.7 million metric tons of basic petrochemicals a year, primarily sold to customers in Asia Pacific.

“Petrochemical facilities are very energy intensive and any variation in power factor will result in higher losses and reduced transmission capacity,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division.

“By providing reliable power factor correction solutions and infrastructure, we are helping our customers such as Sadaf to optimize the productivity and efficiency of their operations as well as realize significant cost savings,” he added.

ABB’s contract is a lump sum turnkey project which includes the construction of a new substation for installation of power factor correction equipment.

It also includes supply of a power management solution to be integrated with existing high and medium voltage electrical system into the plant’s electrical grid, as well as installation and commissioning activities, the ABB said in a statement.