Joint venture partners at $20bn complex select South Korean contractor after accepting very low bid
The Sadara Chemical Company has awarded South Korea’s Daewoo Engineering & Construction (Daewoo (E&C)) two packages for the tank farms at its $20bn petrochemicals complex at Jubail in Saudi Arabia.
The South Korean contractor will carry out the engineering, procurement and construction (EPC) for the main tank farm, as well as the specialist cryogenic tanks at the facility.
The combined price Daewoo submitted is in the region of $300m, which is at least $200m lower than the budget estimation.
“Daewoo [E&C] has been selected and was definitely the lowest bidder for this project,” says a contracting source based in Saudi Arabia. “At that price, there is no way most other bidders could compete.”
No one from Daewoo E&C was available for comment when contacted by MEED.
The scope of works for the main tank farm will include the EPC of 62 tanks of various sizes, while the cryogenics package will involve the EPC of two specialist tanks that can hold substances at sub-zero temperatures.
Sadara Chemical Company is the new name for the joint venture of Aramco and Dow. The complex will have a capacity of about 8 million tonnes a year (t/y) and will be constructed at Jubail Industrial City 2 in the Eastern Province of the kingdom.
The complex will produce several speciality chemicals aimed at pushing Saudi Arabia’s petrochemicals industry further downstream.