PMD has invited the five members of the ethylene club to attend a pre-bid meeting in early November in London, in anticipation of the early 2005 release of the tender for the engineering, procurement and construction (EPC)-plus-technology package covering the planned 1.4 million-tonne-a-year (t/y) ethane/butane cracker.

The tender will be preceded by PMD's final decision on a joint venture partner and the formation of the project company's shareholder structure. Arab Banking Corporation (ABC), the financial adviser, is working with PMD on raising $850 million in equity from local and GCC institutional investors by the end of December.

The still-to-be-formed joint stock project company will be named Kayan Petrochemical Company. PMD plans to register the new firm early next year, which will be followed quickly by the release of the preliminary information memorandum (PIM) for the project's debt. Financial close is scheduled for the end of 2005.

PMD is also holding final negotiations with three potential joint venture partners, with the selection of one company planned by year-end. The joint venture partner is expected to take a major equity stake in the project firm, act as offtaker for the bulk of the product and assist in operation and maintenance.