Al-Karaana to release tenders for petrochemicals complex in 2014

05 August 2013

Contractors prequalified for $6.4bn Qatar megaproject

Al-Karaana Petrochemicals Complex plans to release the packages for the Al-Karaana petrochemicals project in the first quarter of 2014.

MEED reported in June that the complex will be split into two large packages. They are:

  • Package 1: steam cracker and offsites and utilities
  • Package 2: linear alpha olefins (LAO) unit, monoethylene glycol (MEG) unit, oxo-alcohols unit

“Contractors had been hoping that the tender would be released in 2013 for this scheme, but this has now been pushed back until 2014,” says a petrochemicals source based in the GCC. “It is an unusual split for the packages, so many are assuming that the bid documents are taking longer than anticipated to put together. This also means contractors are forming consortia to bid.”

Package 1 will be released in January 2014 and three technology providers have been invited to team up with an engineering, procurement and construction (EPC) contractor in order to bid. The potential bidders are:

  • CB&I Lummus/Daelim Industrial/Toyo Engineering/Hyundai Engineering & Construction (US/South Korea/Japan/South Korea)
  • Linde/Samsung Engineering (Germany/South Korea)
  • Technip or Stone & Webster technology/GS E&C/Saipem (France/South Korea/Italy)
  • Technip or Stone & Webster technology/ JGC Corporation/SK E&C (France/Japan/South Korea) 

The mixed-feed steam cracker unit will be supplied with ethane and propane feedstock. The cracker will have a capacity of 1.1 million tonnes a year (t/y) of ethylene and 170,000 t/y of propylene.

The cracker will be tendered to the technology providers on the basis that the winner will carry out the front-end engineering and design (feed) and then execute the EPC in tandem with an EPC contractor.

Package 2 will be released in March 2014 and the list of potential bidders are:

  • Chiyoda Corporation/Foster Wheeler/CTCI (Japan/US/Taiwan)
  • Daelim Industrial/ Hyundai E&C
  • GS E&C/Samsung Engineering/Saipem
  • Tecnicas Reunidas (Spain)
  • Tecnimont/China Huanqiu Contracting & Engineering Corporation (Italy/China)

The MEG unit will have a capacity of 1.5 million t/y and will use UK-based Shell’s technology. The work involves the construction of two trains, each with a capacity of 750,000 t/y.

The LAO and oxo-alcohols units will have capacities of 300,000 t/y and 250,000 t/y respectively.

Al-Karaana is the new name for the petrochemicals joint venture of Qatar Petroleum (QP) and the UK/Dutch Shell Group at Ras Laffan. Contractors interested in bidding were given until 30 May to express an interest.

MEED reported in March that the US’ Fluor had been awarded the feed contract for the three packages using Shell technology, as well as the offsites and utilities.

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