Sadara Chemical asks contractors to resubmit for technical package

03 July 2012

Joint venture partners add addendum for high pressure low-density polyethylene plant

The local Sadara Chemical Company has asked contractors to resubmit bids for one of the technical packages at its $20bn petrochemicals joint venture at Jubail in Saudi Arabia.

The package is the contract to carry out the engineering, procurement and construction (EPC) for the high pressure low-density polyethylene plant at Sadara.

“[Sadara] has added an addendum to the package that changes the scop of works slightly so they have gone back to contractors to ask them to resubmit prices,” says a source familiar with the project. “They are evaluating now, but I believe it will take a little longer to make a decision.”

Sadara is currently awarding the last of its technical packages. MEED reported in late June that Tecnicas Reunidas had been awarded three packages worth a total of $805m by the joint venture.

Sadara Chemical Company 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. It is scheduled for completion in late 2016. The complex will produce several speciality chemicals aimed at pushing Saudi Arabia’s petrochemicals industry further downstream.

Saudi Aramco and the US’ Dow Chemical are the 50:50 joint venture partners behind the scheme.

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