Daelim and JGC lead bidding for Jubail olefins contract

16 November 2007
Japan’s JGC Corporation and South Korea’s Daelim Industrial Company are in line to win the two main process packages on the multi-billion-dollar Jubail olefins complex, planned by the US/local National ChevronPhillips Company.

The two contractors are the first negotiating partners for the two convertible lump-sum contracts. A final decision is due once negotiations in Houston in mid-November are over. JGC has been shortlisted for the estimated $1bn cracker contract, which covers the construction of a 1.2 million-tonne-a-year (t/y) mixed-feedstock cracker.

The technology licence holder is US-based ABB Lummus Global. The two other bidders are Italy’s Snamprogetti and South Korea’s Samsung Engineering Company.

JGC was always in a good position on the cracker deal, as it is already the contractor on the associated Jubail ChevronPhillips complex, which is nearing completion. “Being already mobilised on site has helped a great deal on the bid,” says a source close to the negotiations.

Daelim is the front runner for the estimated $1.2bn polyolefins package, which covers the construction of a 550,000-t/y linear low-density polyethylene unit, a high-density polyethylene unit of the same size, a 400,000-t/y polypropylene plant, and a polystyrene facility. Italy’s Tecnimont is the other.

Parsons E&C, part of Australia’s WorleyParsons, is the front-end engineering and design, and project management consultant.

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