Saudi Aramco has closed its refinery in Jeddah, Reuters reports.
The refinery, which had been in operation since 1967, produced liquefied petroleum gas (LPG), gasoline, diesel, jet fuel, naphtha, and asphalt, according to Reuters. It had a capacity of 90,000 barrels per day (b/d).
The company plans to use the tanks at the complex to distribute oil products, Nasdaq reports.
“The decision to convert the complex to a hub for oil products distribution comes as the company is keen to boost the performance of its facilities,” the company said in a press statement, according to Nasdaq.
The refining operations will be shifted to other Saudi Aramco refineries. Its capacity equaled less than 3% of Saudi Arabia’s refining capacity, Nasdaq reports.
The company is currently building a 400,000 b/d refinery in Jizan Province. It also completed two 800,000 b/d refineries in 2014, Reuters reports.
Over the years, Jeddah has expanded, engulfing the refinery and leading to heightened environmental concerns, according to Nasdaq.