Sahara in JV's sights

07 October 2005
The Italian/South Korean joint venture (JV) of Tecnimontand Daelim Industrial Companyis understood to be in negotiations with the local Sahara Petrochemical Company for the contract to build its polypropylene (PP) and propane dehydrogenation (PDH) plant in Jubail. An award is expected soon. Construction will take about two years.

The scope of works for the engineering, procurement and construction (EPC) contract calls for the construction of PDH and PP units with capacities of 450,000 tonnes a year each. Europe's Basell, which will take an equity stake of 32-35 per cent in the scheme, will provide its Spheripol PP technology for the PP and will be its sole offtaker. The US' UOPwill provide its Oleflex technology for the PDH unit, which will receive propane feedstock from Saudi Aramco.

Two other groups - US-based Shaw International, with Taiwan's CTCI; and a German team of Lurgiand Uhde- submitted offers in mid-June for the work, which has a budget of about $550 million. US-based Foster Wheeleris the project management consultant (PMC).

Sahara, with Basell, and local firms Saudi International Petrochemical Company (Sipchem)and Tasnee Petrochemicals, is also pursing plans to set up a major olefins complex at Jubail (MEED 24:6:05). A team of Germany's Linde and South Korea's Samsung Engineering Companyhas the estimated $1,200 million contract to build the project's ethane/propane feedstock cracker, with tender documents for the high density and low-density polyethylene units expected within weeks.

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