Olefins 9 kicks off

21 December 2001

Construction of an ethane cracker at the olefins 9 petrochemical plant in the Bandar Assaluyeh special economic zone (SEZ) is set to move forward following the conclusion of financing arrangements in early December. The contract for the 1 million-tonne-a-year (t/y) facility, which has been awarded to a partnership of France's Technipand the local Nargan Consulting Engineers, finally came into force on 13 December (MEED 29:9:00).

The turnkey contract is worth Eur 209 million ($189 million) and covers basic and detailed engineering, procurement and supply of equipment and materials, supervision during construction and commissioning, and training services.

Technip completed basic engineering for the project earlier this year under an advanced cash payments system. Engineering work is being carried out at Technip offices in Rome, Paris and The Hague.

Nargan, a private consulting engineer, will carry out the detailed engineering and procurement, and supply of equipment and materials of local origin.

The financing for the foreign component of the scheme, Eur 182 million ($164 million), is provided through a multisource facility lead arranged by BNP Paribasand Natexis. The facility is part of a framework agreement signed between BNP and four local state-owned banks in 1997 for $500 million.

European export credit agencies providing cover are France's Coface, Italy's Sace and NCM of the Netherlands. The package is also guaranteed by the Economy & Finance Ministry. Completion of the project is set for July 2003.

Technip is also pressing ahead with engineering for the olefins 10 plant in the Bandar Assaluyeh SEZ. The company won the Eur 300 million ($271 million) contract to build a 1.4 million-t/y ethane cracker in partnership with Nargan in March (MEED 23:3:01).

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