Four bid for Safco expansion

04 October 2002

Four groups bid on 30 September for the estimated $400 million engineering, procurement and construction (EPC) contract to expand the Saudi Fertiliser Company (Safco)complex in Jubail. The bidders are: Germany's Uhde, Japan's Toyo Engineering Corporation, Italy's Snamprogettiwith Japan's Mitsubishi Heavy Industries, and Halliburton KBRof the US with Japan's Chiyoda Corporation.

The expansion will involve the addition of new urea and ammonia lines, each with a capacity of about 1 million tonnes a year (t/y). Safco capacity now is about 1.2 million t/y of ammonia and 1.5 million t/y of urea. Contractors say an award is expected in January.

The expansion is the only major contract now out to bid for Saudi Basic Industries Corporation (Sabic). A linear alpha olefins (LAO) plant planned at Jubail United Petrochemical Company (United)is expected to be tendered later this year. The last EPC package at the United complex, it will have a capacity of 150,000 t/y. The plant will use new technology developed by Sabic's research and development team in conjunction with Germany's Linde (MEED 24:5:02).

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