The tank farm packages planned by Saudi Aramco and the US’ Dow Chemical Company for their $15bn-plus petrochemicals joint venture at Jubail could be worth more than $1bn in total – twice what was originally expected by contractors hoping to work on the project.

Prospective prequalifiers

• Chicago Bridge & Iron (US)
• Daelim (South Korea)
• Daewoo Engineering & Construction (South Korea)
• GS Engineering & Construction (South Korea)
• Hyundai Engineering & Construction (South Korea)
• Hyundai Heavy Industries (South Korea)
• Larsen & Toubro (India)
• Petrofac (UK)
• Petrosteel (Singapore/local)
• Punj Lloyd (India)
• Saipem (Italy)
• Samsung Engineering (South Korea)
• Sinopec Engineering Incorporation  (China)
• SK Engineering & Construction (South Korea)

Source: MEED

 “As well as the three main tank farm packages, you also have to remember that each part of the complex will also have a number of tanks installed,” says a source. “This means that the complex could have 180-200 tanks. With the associated facilities, as well as the current steel prices, you are looking at $1bn-plus.”

The source adds that the thicker plates required for the project are not yet available in the kingdom, so will need to be imported.

Contractors are currently prequalifying for the tank farm project that will be used for the storage of the petrochemicals produced at the complex. The work will be split into three packages. Two of the packages will be located at the main complex and will include a cryogenics facility and another package will cover the port (MEED 1:4:11).

Another package currently being tendered is the engineering, procurement, construction and management (EPCM) contract for the utilities and offsite packages at the complex.

The US’ KBR, Jacobs and Foster Wheeler are among the bidders for the contract, with bids due to be submitted early in the second quarter.  

“This is one of the packages that Aramco and Dow will be looking at as they try to formulate a budget for the project,” says a source. “Many people are now saying that it is going to be more than the $15bn that has been touted around.”

A final investment decision is yet to be made regarding the Aramco Dow project and sources have indicated that this will be made later in 2011.

MEED reported that the joint venture partners are planning to start approaching export credit agencies (ECAs) for financing their more than $15bn Jubail petrochemicals project in late July (MEED 2:4:11).