Advice sought on olefins II

21 May 2004
International and regional banks have been given until 23 May to submit proposals for the financial advisory post on the proposed olefins II being developed by a joint venture comprising Petrochemical Industries Company (PIC), Dow Chemical Companyand local private sector investors. An award is imminent on the project management consultancy (PMC) contract, for which two US-based companies - Fluor Danieland Foster Wheeler- are frontrunners (MEED 9:4:04).

The $1,500 million olefins II facility, to be financed by a mixture of equity and commercial debt, will replicate the original Equate Petrochemical Companyplant. It will have nameplate capacity of 850,000 tonnes a year (t/y) of ethylene, 600,000 t/y of ethylene glycol and 400,000 t/y of polyethylene. About 130,000 t/y of the ethylene produced will be used as feedstock for a proposed styrene project, which will have PIC, Dow and Kuwaiti private sector investors as its shareholders.

This facility will also take 350,000 t/y of benzene from an aromatics project, which is being developed by PIC and the Kuwaiti private sector, without Dow.

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