Indo-Danish team set on formaldehyde deal

06 January 2006
A joint venture (JV) of Denmark's Haldor Topsoe and India's Larsen & Toubro(L&T) is understood to be in final negotiations with Saudi Formaldehyde Chemical Company (SFCCL) for the construction of two new methanol and carbon monoxide (CO) units at its Jubail-based formaldehyde complex. A contract award is expected by the end of January.

The project's scope of works calls for the construction of a 320,000-tonne-a-year (t/y) methanol plant and a 650,000-t/y CO unit. Topsoe is expected to do most of the engineering and supply the technology, while L&T will do most of the civils work. Two other contractors - Germany's Lurgi and the US' Jacobs Engineering - priced the work when bids were submitted in the summer.

In early 2005, Topsoe was awarded a separate contract to supply technology and carry out engineering services at the complex. The 10-month contract called for the Danish firm to supply the licence, catalysts, control system and related equipment to SFCCL as well as install a single reactor with capacity to produce 200,000 tonnes a day of 37 per cent formaldehyde. SFCCL already has three formaldehyde production units, all based on Haldor Topsoe technology (MEED 11:3:05).

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