GACIC signed the $130 million contract with Oslo-based AkerKvaernerto carry out EPC works for its planned butanediol (BDO) complex. AkerKvaerner was selected by GACIC last March and has already completed engineering designs for the complex, with construction now under way. The BDO unit, which is due to come on stream in 2005, will have capacity of 75,000 tonnes a year (t/y). GACIC is an affiliate of Saudi International Petrochemical Company (Sipchem), which is also in the process of setting up a methanol plant at Jubail, for which Japan's Chiyoda Corporationis the EPC contractor. The project manager for the Sipchem complex is the US' Fluor Daniel(MEED 16:1:04).

Teldene signed on 3 March the $215 million EPC contract with Italy's Tecnimontto build a 400,000-420,000-t/y polypropylene (PP) plant at Yanbu. The facility, which will use Spheripol technology from Europe's Basell, will receive polymer-grade propylene feedstock from a nearby 420,000-t/y propane dehydrogenation (PDH) plant, for which the US' UOPwill provide its oleflex technology. Germany's Lurgihas the lump-sum EPC contract on the PDH scheme, which is due to come on stream in 2006.

The PDH unit will receive propane feedstock from Saudi Aramcoand will be operated by limited liability company The National Propylene Company (Alfasel), in which the local Alujain Corporationis a major stakeholder. Another local firm, National Petrochemicals Company (Natpet), in which Alujain holds a 42 per cent stake, is a major shareholder in Teldene.

Alujain is also at an advanced stage of development for an estimated $400 million plant to produce clean fuels in Jubail (MEED 23:1:04).