Alujain selects Yanbu PMC contractor

12 November 2004
The local Alujain Corporationhas taken another step towards setting up a new propylene project at Yanbu, appointing the US' Parsons Internationalas the project management consultant (PMC). Alujain's financial advisers, the London office of ANZ Investment Bankand Kuwait-based Gulf Investment Corporation (GIC), are working towards completing commercial loan arrangements for the project by the end of the first quarter of 2005 (MEED 16:7:04).

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.

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