Olefins 8 lined up for tender

19 September 2003
The ethane cracker tender on the olefins 8 petrochemicals complex is expected to go for tender by mid-October, project sources say. The cracker will have capacity of around 1 million tonnes a year (t/y) of ethylene and derivatives.

The complex was originally to have been carried out in partnership with the Royal Dutch/Shell Group. However, Shell pulled out of the project, which is now being promoted by National Petrochemical Company (NPC) alone.

In addition to the ethane cracker, the complex will eventually comprise: a high-density polyethylene (HDPE) plant with capacity of 350,000 t/y; a medium-density polyethylene (MDPE) plant with capacity of 350,000 t/y; a monoethylene glycol (MEG) unit with capacity of 550,000 t/y; and di-triethylene glycol and pyrolysis gasoline units of less than 100,000 t/y each.

Petrochemical Industries Development Management Company (Pidmco), a subsidiary of NPC, is to issue the bid documents after compiling more details on the supply of feedstock.

Three companies will be invited to bid: Paris-based Technip, Germany's Linde and Europe's ABB Lummus. The project is to be tendered on an engineering, procurement and construction (EPC) basis, with the contract also including the front-end engineering and design (FEED) package.

NPC is increasingly using the EPC approach in tendering major project work. The model, which is also being applied on the Ilam and Kharg island projects, marks a major shift for the company, which has traditionally tendered work among international contractors on an engineering and procurement basis.

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.