RPT-UPDATE 1-Aramco delays Ras Tanura refinery expansion-sources

(Repeats from Monday) (Updates throughout, adds detail on Dow joint venture)

DUBAI, April 13 (Reuters) - State oil giant Saudi Aramco has delayed plans to expand capacity by 400,000 barrels per day at its Ras Tanura refinery, industry sources said on Monday.

The $8-billion project is one of five planned in the kingdom to boost domestic refinery capacity by up to 1.7 million barrels per day from 2.096 million bpd. Aramco has already delayed two of those projects as it looks to drive down costs.

"Aramco has sent out an official letter to potential bidders saying the project was deferred," one industry source told Reuters.

A source from another company planning to bid for construction contracts for the Ras Tanura expansion project said it had also received notification of the delay.

An Aramco spokesman declined to comment.

The refinery's expansion is to help meet both rising domestic demand and to supply feedstock to a giant petrochemical joint venture between Dow Chemical Co (DOW.N) and Aramco to be built nearby.

That plant, expected to cost more than $20 billion, would be one of the largest single petrochemical plants to be built in the world.

A third source on Monday said the petrochemical project had also been delayed. Completion of preliminary design and engineering for the petrochemical plant would take until the first or second quarter of 2010, from the initial target of end 2009.