Plans to build a new petrochemicals complex in Ras al-Khaimah (RAK), which will receive ethylene feedstock from Iran, are slowly taking shape. The RAK government is in final negotiations with Iran's National Petrochemical Company (NPC)to seal a joint venture agreement to carry out the scheme, which will be undertaken by a new project company known as Ittihad Investment Company, a subsidiary of the newly created RAK Petroleum Company (RPC - MEED 3:6:05).
Houston-based Stone & Webster Management Consulting Groupis carrying out the pre-front-end engineering and design (FEED) work on the proposed RAK complex. The plant will comprise monoethylene glycol (MEG), diethylene glycol (DEG) and triethylene glycol (TEG) units. Ethylene feedstock will be delivered by ship from a new ethane cracker at Assaluyeh in Iran. International project managers have been approached for the RAK project management consultancy (PMC) contract. RPC will be the local shareholder in the EG complex and is waiting for approval to launch an initial public offering (IPO) from the Planning & Economy Ministry. The company was set up in July with a capital of AED 2,000 million ($545 million). It will offer 55 per cent of the company's capital, with shares priced at AED 1 ($0.27) each. The offering is expected to solicit a strong response, given the high level of liquidity in the local market and current appetite for IPOs. The IPO of Sharjah-based Dana Gas on 3 October was 200 times oversubscribed (MEED 7:10:05, Briefing).