The US/South Korean joint venture of FosterWheelerand Hyundai Engineering &Construction Companyhas received a letter of intent for the contract to build the ethylene oxide/ethylene glycol (EO/EG) plant at the Olefins II petrochemicals complex in Shuaiba. The client is The Kuwait Olefins Company (TKOC- MEED 18:11:05).
Under the terms of the estimated $350 million-400 million engineering, procurement and construction (EPC) contract, Foster Wheeler will carry out most of the engineering work, with Hyundai responsible for some procurement. The local KharafiNationalwill be subcontracted to carry out the civil and mechanical works packages. The US' Dow Chemical Companyis technology licence provider (MEED 1:7:05). Unusually for Kuwait, and following the trend started by Saudi Aramcofor the largest of its projects, the three-year contract will be initially implemented on a cost-reimbursable basis, and be converted to full lump-sum turnkey (LSTK) once a majority of the detailed engineering is complete. TKOC, a joint venture of Dow, the local Petrochemical Industries Company (PIC)and local public investment vehicle Al-Qurain Petrochemical Company, is understood to have adopted the new contract format after bids came in about 20 per cent above its budget estimates. Feedstock for the 600,000-tonne-a-year (t/y) EO/EG plant will be sourced from the complex's 850,000-t/y ethane cracker, under construction by Paris-based Technip. Spain's Tecnicas Reunidas was the only other contractor to bid for the EO/EG work (MEED 1:7:05). An award is imminent for the EPC contract covering the 450,000-t/y styrene monomer unit. Three companies and groups submitted bids in September for the work, with South Korea's Daelim Industrial Companyunderstood to be frontrunner for the project (MEED 21:10:05). The Dutch office of the US' Fluor Corporationis the overall project management consultant (PMC) on the Olefins II project. The overall development of the complex is being overseen by Equate Petrochemical Company, the joint venture of the local PIC and Dow.
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