A team of Germany’s Lindeand South Korea’s Samsung Engineering Companyhas received a pre-commencement order from the local Tasnee Petrochemicalsfor the estimated $1,000 million-1,100 million mixed feedstock cracker at Jubail (MEED 17:6:05).

No agreements have been signed yet but the order was issued to speed up the project, which has been delayed due to commercial proposals exceeding Tasnee’s budget. Industry sources say Linde/Samsung will start preliminary engineering and procurement of long-lead items under an early works facility, which will ensure payments until Tasnee reaches financial close in six-seven months. It is understood that details of the construction portion will continue to be negotiated as financing arrangements progress.

Linde/Samsung will act as technology-plus-engineering, procurement and construction (EPC) contractor on the cracker and build the utilities and offsites that will serve the Tasnee petrochemicals complex. The ethane/propane cracker will have capacity to produce 1.2 million tonnes a year. The other main competitor for the contract was the US-based ABB Lummus Globalwith Italy’s Snamprogetti. HSBCwith local affiliate Saudi British Bank is acting as financial adviser on the cracker.

Technical and commercial offers are due to be submitted in August by international contractors for the high-density and low-density polyethylene (HD/ LDPE) units at the Tasnee complex.

US-based Fluor Corporationis the project management consultant (PMC) on the olefins scheme, which is scheduled to come on stream in 2008 (MEED 15:4:05).