Four line up for new Jubail LAB complex

25 February 2003
Evaluation of bids has started at Gulf Farabi Petrochemicals Company (GFPC) for the contract to build its normal paraffin (n-paraffin) and linear alkyl benzene (LAB) complex at Jubail. Four companies are competing for the engineering, procurement and construction (EPC) award on the estimated $250 million project, which is being promoted by the local Al-Rajhi International Contracting (ARIC- MEED 1:3:02).

The bidders are Daelim Engineers & Construction Company, LG Engineering & Constructionand Samsung Engineering Corporation- all of South Korea, and Canada's SNC Lavalin. A contract award is expected by June.

The Gulf Farabi complex will have capacity of 120,000 tonnes a year (t/y) of n-paraffin and 70,000 t/y of LAB. The majority of the n-paraffin will be used as feedstock for the production of LAB, which will be marketed locally and abroad. Plant completion is scheduled for late 2004.

The US' UOPis providing technology for the complex, while kerosine feedstock will be sourced from the Saudi Aramco Shell Refinery Company (Sasref)plant.

US-based Foster Wheeler Corporationwas appointed in February 2002 to carry out the front-end engineering and design (FEED) and project management consultancy for the project. Foster Wheeler's local partner is Radicon Gulf Consult.

A second n-paraffin/LAB facility, to be located at Yanbu, is planned by Saudi Indo Petrochemical Company (Sipco), a joint venture between Bahrain-registered Gulf Petroproduct Companyand local investors. The plant has planned capacity of 100,000 t/y of n-paraffin and 80,000 t/y of LAB (MEED 8:2:02).

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