Award approaches on Gulf Farabi LAB project

01 August 2003
Canada's SNC Lavalinis the frontrunner to take the engineering, procurement and construction (EPC) contract on the Gulf Farabi Petrochemicals Company (GFPC)project, although an award is not expected until the financing is in place on the $250 million scheme. Three other firms, all from South Korea, were competing for the contract, which calls for the construction of a 120,000-tonne-a-year (t/y) normal paraffin (n-paraffin) unit and a 70,000-t/y linear alkyl benzene plant in Jubail (MEED 2:5:03).

The project is expected to be financed through equity, a loan from the Saudi Industrial Development Fund and a commercial loan. For the commercial loan, two local bank groups have been formed to bid for the mandate, and are understood to be awaiting final project information from the client. The award of the mandate is expected in the autumn.

The US' UOPis licensing technology for the complex, while kerosine feedstock will be sourced from the Saudi Aramco Shell Refinery Company (Sasref) plant.

US-based Foster Wheeler Corporationwas appointed in February 2002 to carry out the front-end engineering and design (FEED) and project management consultancy for the project. Foster Wheeler's local partner is Radicon Gulf Consult.

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