Prequalification starts at $7.4bn Qatar chemicals scheme

18 August 2014

Al-Sejeel petrochemicals complex invites interest for last two packages at Ras Laffan

The partners behind the Al-Sejeel petrochemicals complex in Qatar have started the prequalification process for the two remaining packages at the $7.4bn scheme at Ras Laffan in northern Qatar.

Qatar Petroleum (QP) and Qatar Petrochemical Company (Qapco) have already tendered the package for the cracker and three consortiums are already formulating bids.  

The two remaining packages will cover the technical units, and offsites and utilities. It is not yet known whether engineering, procurement and construction (EPC) contractors will bid for the remaining packages alone or as part of consortiums.  

“The tenders should be released [for the last two packages] by the end of September,” says a source familiar with the scheme. “No one will be sure of the bidders until the prequalification has been concluded.”

Italy’s Tecnimont will carry out the front-end engineering and design (feed) for the technical packages and the US’ Bechtel will be carrying out the project management consultancy (PMC) for the scheme. The technical units will include 850,000 tonnes a year (t/y) of high-density polyethylene (HDPE), 430,000 t/y of linear low-density polyethylene (LDPE), 760,000 t/y of polypropylene (PP) and 83,000 t/y of butadiene.

The partners signed technology licences in June with two US firms: Univation Technologies for the polyethylene units and Dow Chemical for the polypropylene units. Completion is expected in 2018.

The units will be fed by 1.4 million t/y of ethylene from a mixed-feed cracker that will utilise ethane, butane and naphtha.

The bidders for the cracker package comprise the technology providers and their selected EPC partners. The terms of the contract will involve feed, technology provision and full EPC of the scheme. The bidding consortiums are:

Petrochemicals packages

Al-Sejeel cracker bidders

Al-Karaana tender packages

Al-Karaana package 2 bidders

Technical submissions have already been submitted and now the commercial proposals are being formulated. The deadline for the final commercial bids is 15 October.

QP owns an 80 per cent stake in Al-Sejeel with Qapco owning the remaining 20 per cent.   

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