Sabic and Shell award polyurethane plant design to KBR

19 March 2014

New complex planned for Jubail could have budget of up to $3bn

Saudi Basic Industries Corporation (Sabic) and the UK/Dutch Shell Group has awarded the US’ KBR the front-end engineering and design (feed) contract for the planned polyurethane plant at the Saudi Arabia Petrochemical Company (Sadaf) complex at Jubail in Saudi Arabia.

The joint venture partners are moving ahead with the petrochemicals project after a long period at the feasibility study phase. MEED reported in May 2012 that the scheme was in its early stages. 

The feed is expected to last at least 12 months due to the complexity of some of the units planned. Due to the economies of scale, the budget for the projects is now expected to be up to $3bn.

The units planned will include:

  • Toluene diisocyanate (TDI)
  • Methylene diphenyl diisocyanate (MDI)
  • Polyol
  • Polyurethane
  • Offsites and utilities

Polyurethane is derived from monomers and combines the qualities of rubber and plastic. Uses for the material include high-performance adhesives, synthetic fibers, insulation panels, seals and gaskets, as well as several applications in the automotive industry.

“All of the product slate from this plant does fit with Saudi Arabia’s downstream aspirations and the partners will be hoping to sell as much of the offtake as possible to the domestic market,” says a petrochemicals source based in Saudi Arabia.

Sabic and Shell were not available for comment when contacted by MEED. Tthe technology will be provided by Shell.

The Sadaf complex has been in operation since 1985 and is a 50:50 joint venture between Sabic and Shell. The complex’s current offtake includes ethylene, crude industrial ethanol, styrene, caustic soda and ethylene dichloride.

MEED reported in early March that Sabic was formulating several initiatives aimed at harnessing the kingdom’s petrochemicals for domestic use.

Saudi Arabia’s petrochemicals industry is the largest in the region and is worth $354bn, a third of the value of the Saudi Stock Exchange (Tadawul).

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