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.