Alpha olefins awarded

14 May 2004
Germany's Linde has received a letter of intent to carry out the construction of the linear alpha olefins unit on the Jubail United Petrochemical Company (United) project. The award of the lump-sum turnkey (LSTK) contract had suffered extensive delays due to bids coming in over budget (MEED 19:3:04).

Linde was the low bidder at just under $200 million for the engineering, procurement and construction (EPC) contract. South Korea's Samsung Engineering Corporationwas the other main bidder for the award.

The plant will comprise a 150,000-tonne-a-year alpha olefins unit, based on the Alpha-Sablin technology jointly developed by Linde and United's parent, Saudi Basic Industries Corporation (Sabic). Linde has already started engineering on the project, which is due to be completed in 2006.

A catalyst plant, originally planned to be included in the project's scope, will now be handled separately. The project manager is the US' Fluor Daniel.

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