Saudi Arabia: Veolia Water to Build Desalination Plant at Sadara Petrochemical Complex in Jubail City

  Saudi Arabia: Veolia Water to Build Desalination Plant at Sadara
  Petrochemical Complex in Jubail City

Business Wire

PARIS -- July 2, 2013

Regulatory News:

Veolia Environnement  (Paris:VIE):

Marafiq, Saudi Arabia’s leading water and electricity services operator, has
contracted Veolia Water to design, build and operate the largest
ultrafiltration and reverse osmosis desalination plant in Saudi Arabia. With
this contract, Veolia Water will generate $310 million (€232 million) in
revenue for the plant’s design and construction, and $92 million (€69 million)
in revenue for its operation for 10 years, with an option to extend the
contract for a further 20 years.

With a capacity of 178,000 m^3 per day, this new plant will supply the Sadara
petrochemical complex built by Dow Chemical and Saudi Aramco in Jubail
Industrial City II and is due to come on stream in June 2015. Dow Chemical and
Aramco will produce solvents and glues for the automotive and packaging
industries at the Sadara site. The water supplied will be used in this immense
facility’s two cooling towers and as boiler feed water.

To meet the very strict water quality standards required by Marafiq and
minimize this new plant’s impact on the environment, Veolia Water, through its
subsidiary Sidem, has designed a plant combining two seawater treatment
solutions: ultrafiltration and reverse osmosis. After an initial treatment
phase involving dissolved air flotation to capture the suspended particles in
the water and ultrafiltration, the water will then be desalinated by reverse
osmosis membranes before being remineralized. The combination of these various
processes will ensure a secure water supply, limit the risk of plant failure
and extend its lifespan, while at the same time reducing the site’s energy
requirements and costs.

Created in the 1970s by the authorities of the Kingdom of Saudi Arabia,
Marafiq operates the country’s water and electricity services and is
responsible for overseeing the development of the Jubail and Yanbu industrial
cities designed to ensure Saudi Arabia’s economic diversification.

“With this new reference, Veolia Water confirms its position as a leader in
desalination and the reference partner for industrial entities. Veolia Water’s
unique expertise and technology were the deciding factors in meeting the
requirements of these exacting clients Marafiq, Saudi Aramco and Dow
Chemical,” explains  Jean-Michel Herrewyn, Chief Executive Officer of Veolia
Water.

Present in Saudi Arabia since 1979 where it built the desalination plant for
the city of Al Khobar in the Eastern Province, near the Persian Gulf, in 2010,
Sidem had already built the first desalination plant in Jubail City. One of
the largest and most efficient in the world, this 800,000 m^3 per day capacity
plant uses Veolia’s multiple-effect distillation (MED) process, which consumes
three times less energy than rival processes.

                                    *****

Veolia Water, the water division of Veolia Environnement, is the world leader
in water and wastewater services. Specialized in outsourcing services for
municipal authorities, as well as industrial and service companies, it is also
one of the world's major designers of technological solutions and constructor
of facilities needed in water and wastewater services. With 89,094 employees,
Veolia Water provides water services to 100 million people and wastewater
services to 71 million. Its 2012 revenue amounted to €12,078 billion.

www.veoliawater.com

Veolia Environnement Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With 220,000 employees*, the company has
operations all around the world and provides tailored solutions to meet the
needs of municipal and industrial customers in three complementary segments:
water management, waste management and energy management. Veolia Environnement
recorded revenue of €29.4 billion* in 2012. www.veolia.com
(*) Excluding VeoliaTransdev employees and revenues currently under
divestment.

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