CB&I team wins largest Liwa Plastics package

24 November 2015

The total cost of the Oman scheme is expected to be $5.2bn

A consortium of Netherlands-based CB&I and Taiwanese group CTCI has been awarded a $2.8bn package on Oman’s Liwa Plastics project.

MEED reported in October that the group was the frontrunner to win the steam cracker package, which is the largest of four engineering, procurement and construction (EPC) packages tendered by Oman Oil Refineries & Petroleum Industries Company (Orpic) on the planned $5.2bn petrochemicals project in Sohar, northern Oman.

The scope of work includes the 880,000 tonne-a-year (t/y) ethylene plant, pygas unit and methyl tert-butyl ether (MTBE) unit, as well as related offsites and utilities. It also covers the construction of cryogenic and atmospheric storage tanks and pipe spool fabrication.

CB&I had previously been awarded the scheme’s front-end engineering and design (feed) contract, which includes the cracker technology licence.

Orpic is in negotiations with the preferred bidders for the other three EPC packages and is planning to award the contracts in December.

On 20 October, Orpic revealed the preferred bidders for the other three packages as: Italy’sTecnimont; a joint venture of South Korea’s GS Engineering & Construction (GS E&C) and Japan-based Mitsui & Company; and Indian group Punj Lloyd.

MEED understands Tecnimont has been selected to build three plastics plants at Orpic’s main site in Sohar, northern Oman. GS E&C/Mitsui has been selected to build a natural gas extraction unit in Fahud, and Punj Lloyd is the preferred bidder to install a natural gas liquids (NGLs) pipeline between Fahud and Sohar.

Liwa Plastics will be the largest petrochemicals operation in Oman, and is one the largest single projects ever undertaken in the sultanate.

The cracker will use a combination of feedstocks including NGLs extracted from natural gas, liquid petroleum gas (LPG) from the Sohar refinery and aromatics plant, dry gas from the Sohar refinery, and condensates from Oman LNG.

The complex will have the capacity to produce 880,000 tonnes a year (t/y) of high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE); 300,000 t/y of PP; 90,000 t/y of methyl tert-butyl ether (MTBE); 41,000 t/y of butane; and 111,000 t/y of pyrolysis gasoline.

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