It is understood that Alujain has yet to sign the PMC contract with Parsons. Germany’s Lurgi, which has the lump-sum turnkey (LSTK) contract on the scheme, is already working on the project’s engineering portion.

The propylene project, which will be operated by a limited liability company named The National Propylene Company (Alfasel), will comprise a 420,000-tonne-a-year (t/y) propane dehydrogenation (PDH) plant, for which the US’ UOPwill provide its oleflex technology. Propane feedstock for the unit will be supplied by Saudi Aramco. The facility will provide feedstock for a nearby polypropylene (PP) plant being developed by the local Teldene.

Italy’s Tecnimonthas been selected as the engineering, procurement and construction (EPC) contractor on the Teldene project, which will produce 350,000 t/y of PP using technology from Europe’s Basell. However, it is understood that Tecnimont and Teldene are still negotiating the commercial terms of the contract.