Tabuk Cement Co has announced that it has been refused the fuel needed to operate its planned second line. The company has been informed by Saudi Arabia's Ministry of Petroleum and Mineral Resources that it will not receive the fuel needed to power the line, but added that it remains in negotiations with the ministry.
Tabuk Cement confirmed plans to build a new second line last week, stating that it had signed deals worth US$192m for a new clinker production line, a power plant and a water treatment plant.
The 26-month contract is deemed as necessary by the firm since its only existing line is nearing the end of its economic lifespan. It has been in operation for 19 years and the average lifespan of a cement plant is 25 years.
The company pointed out that there is an economic risk in relying on the older line, as profits could be impacted if it suffers a breakdown. Plants which are more than 16 years old are considered to be less reliable and the existing plant is considerably less efficient than the proposed new line, which would be capable of producing 5000tpd of clinker.
