Luberef receives Aramco notice for new Jeddah supply deal

The new agreement will replace the existing feedstock supply contract, which is set to expire on Aug. 28, 2026.

In a statement to Tadawul, Luberef said the notice is in line with the Ministry of Energy’s approval to allocate feedstock to the Jeddah plant. The company added that the move represents a key step that reinforces ongoing cooperation between Saudi Aramco and Luberef to ensure the continuity of operations at the Jeddah facility beyond 2026.

The company said that with continued operations at the Jeddah facility, it will maintain the plant’s current maximum production capacity of 275,000 metric tons per year (mtpy) of Group I base oils. Once the second expansion project in Yanbu is completed, Luberef’s total maximum production capacity will rise to 1.53 million mtpy.

It added that any material developments will be announced upon the completion, signing, and approval of the new agreement, in line with applicable regulations.

Luberef’s initial public offering (IPO) prospectus had indicated that the Jeddah facility would be shut down by mid-2026, but the new feedstock allocation ensures operations will continue beyond that date.

According to Argaam data, Luberef recently received notices from the Ministry of Energy regarding feedstock allocations for its facilities. The allocation for the Jeddah plant, 24,500 barrels per day, will be extended until Dec. 31, 2030, subject to renewal.