ITB issued for Ras Laffan cracker

01 August 2003
The invitation to bid (ITB) package for the Ras Laffan ethane cracker has been issued following meetings between the five members of the ethylene club and the client in Doha, starting on 22 July. In a phased bidding schedule, prospective bidders have been requested to submit an unpriced commercial proposal, effectively an execution proposal, by late October, followed by a technical proposal in early January. Commercial proposals are due to be submitted during the second quarter of 2004. Qatar Chemical Company II (Q-Chem II)is managing the project on behalf of the client, Ras Laffan Ethylene Company.

The prospective bidders for the technology supply and engineering, procurement and construction (EPC) contract are: the US-based ABB Lummus Global, with Japan's Toyo Engineering Corporation; US-based Kellogg Brown & Root, with Chiyoda Corporationof Japan; Stone & Websterof the US, with JGC Corporationof Japan; Paris-based Technip-Coflexip; and Germany's Linde, with South Korea's Samsung Engineering Corporation.

The package involves the construction of a 1.3 million-tonne-a-year (t/y) cracker. An ethylene pipeline, which will run from the plant to Mesaieed, will be tendered separately.

The ethylene feedstock will be used by new polyethylene units at Mesaieed planned by Q-Chem II and the local/French joint venture Qatofin, the shareholders in the Ras Laffan Ethylene Company.

The Houston office of Oslo-based Aker Kvaernerhas recently started work on the front-end engineering and design (FEED) package for the Q-Chem II units, which cover a 350,000-t/y high-density polyethylene (HDPE) plant and a 350,000-t/y alpha olefins facility. The FEED is due to be completed in early 2004, after which the EPC tender will be issued. Licensing for both units will be provided by Q-Chem II's foreign shareholder, the US' ChevronPhillips Chemical Company(MEED 11:7:03).

The Qatofin project involves the construction of a 450,000-t/y linear low-density polyethylene (LLDPE) plant, based on Unipol PE technology, at Mesaieed. The EPC package is expected to be issued in the autumn.

Royal Bank of Scotlandis acting as financial adviser for the Q-Chem II project; HSBCis the financial adviser to Qatofin.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.