South Korea’s Daelim Industrial Company received on 15 July a letter of intent for the offsites and utilities (O&U) package on the new Saudi European Petrochemical Company (Ibn Zahr) polypropylene (PP) 3 plant in Jubail.

Daelim beat off competition from its compatriot Samsung Engineering Company to win the work, which is worth
an estimated $140 million-150 million.

Under the terms of the lump-sum turnkey (LSTK) contract, Daelim will carry out basic
infrastructure, including piping, roads and fencing (MEED 14:7:06).

The contractor is among
five international companies understood to be prequalified
to bid by 30 October for the complex’s 320,000-tonne-a-year olefins conversion unit (OCU), which will provide the majority of the propylene feedstock for the PP unit. US-based ABB Lummus Global is the technology licence provider
for the OCU.

Samsung received a letter of intent for the $302 million engineering, procurement and construction (EPC) PP plant contract in June. Oslo-based Aker Kvaerner is the project management consultant (PMC) on the complex (MEED 30:6:06).