The scope of works for the estimated $500 million EPC contract covers the construction of a 450,000-tonne-a-year dual PDH/PP plant. Detailed engineering is already under way on the scheme, with work on the construction portion due to start soon. The plant is scheduled to be commissioned by the first quarter of 2008.
The project company is Advanced Polypropylene Company (APPC)
, whose main shareholders are NPPC, the local Dar Chemicals
, the Islamic Development Bank (IDB), US-based ABB Lummus Global
, the US’ VinmarGroup
and Al-Rashid Group
and Al-Rajhi Group
, both local.
ABB Lummus has the project management consultancy (PMC) contract on the project and has licensing agreements for the plant’s technology. Propane feedstock for the facility will be provided by Saudi Aramco
. Long-term offtake agreements have been secured with Vinmar and Japan’s Mitsubishi Chemical Corporation
for the plant’s PP output.
Banks are still waiting for the invitations to participate in the debt package. The financing facility is expected to be worth about $400 million, with the Saudi Industrial Development Fund contributing additional funding. Gulf International Bank
is acting as financial adviser (MEED 2:9:05).