Ibn Zahr package award imminent

14 July 2006

An award was imminent inmid-July for the offsites and utilities (O&U) package an the new Saudi European Petrochemical Company (Ibn Zahr) polypropylene (PP) complex in Jubail, with two South Korean contractors - Daelim Industrial Company and Samsung Engineering Company - left in the running. Ibn Zahr has also released bid documents for another package on the project, covering the complex's olefins conversion unit (OCU - MEED 26:5:06).

The estimated $150 million O&U contract involves the construction of basic infrastructure at the new complex, including piping, roads and fencing. Like the $302 million main PP plant package, recently awarded to Samsung, the O&U contract will be awarded on a lump-sum turnkey (LSTK) basis (MEED 30:6:06).

International contractors have also been invited to submit bids by 30 October for the estimated $100 million-150 million OCU contract. Prequalifiers include Japan's Toyo Engineering Corporation, Taiwan-based CTCI, Samsung, Daelim and US-based ABB Lummus Global, which has licensed its technology for the OCU.

The OCU is aimed at providing feedstock for the PP facility through the conversion of butylenes and ethylene into propylene. It is still a relatively new technology - fewer than 10 have been built worldwide. Once built, the Ibn Zahr OCU will be the first of its kind in the Middle East. Abu Dhabi Polymers Company (Borouge) is also planning one, but this is at an earlier stage of development (MEED 23:6:06).

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