The first sub-contract covers mechanical and civils work at the two polypropylene plants. Lebanon’s Lahoud Engineering Company is understood to have been selected for the work, with the contract set to be signed by the end of March.

The second sub-contract covers mechanical and construction work on the polyethylene unit. A number of companies are vying for the deal, including Pakistan’s Descon Engineering, and Larsen & Toubro and Punj Lloyd, both of India. A final decision is due by mid-March.

Tecnimont was awarded the $1.85bn lump-sum engineering, procurement and construction contract to build the complex’s polyolefins units in 2007. Under that contract, the Milan-based polyolefins and aromatics specialist will build two polypropylene units, with a combined capacity of 800,000 tonnes a year (t/y) and a polyethylene plant with a capacity of 540,000 t/y (MEED 20:4:07).