Gas suppliers line up for $20bn Sadara

10 October 2011

Four companies interested in providing hydrogen and oxygen to Jubail petrochemicals complex

The Sadara Chemical Company has received bids for one package to supply gases to its $20bn complex at Jubail in Saudi Arabia with bids the other package due in mid-October.

Bids for the hydrogen package were received by the joint venture partners in late August and the oxygen package tenders coming in mid-October.

“I think two companies will be shortlisted and then further negotiations will take place,” says a source familiar with the deal.

The four companies bidding for the contract are:

  • Air Liquid Arabia (France)
  • Air Product & Chemical/Abdullah Hashim Industrial Gases & Equipment Company (US/Saudi Arabia)
  • Linde Group (Germany)
  • Paraxair (US)

The plants will be built on a build, own, operate and transfer (BOOT) basis and will be self-financed by the winning contractor.

“This is becoming the accepted model to build gas plants in the Middle East,” the source says. “It requires a large upfront investment and the requisite technology so there are only a few companies capable of executing it.”

The joint venture partners behind the Sadara complex are Saudi Aramco and Dow Chemical. A final investment decision has now been made regarding the project and a special ceremony was held on 8 October at the Aramco headquarters in the Eastern Province of the kingdom.

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