Italy's Tecnimonthas received an early works order from the local Tasnee Petrochemicalsfor the construction of two 450,000-tonne-a-year (t/y) high-density and low-density polyethylene (HDPE/LDPE) plants at its Jubail olefins complex.

A formal agreement has not yet been reached on the full engineering, procurement and construction (EPC) contract, which is understood to have been delayed until financial close is reached on the project, expected early next year.

Under the terms of the initial agreement, Tecnimont will develop the FEED package and begin procurement of long-lead items. A similar agreement was reached earlier in the year between Tasnee and the German/South Korean consortium of Lindeand Samsung Engineering Company, when it was awarded the technology-plus-EPC contract for the 1.2 million-t/y ethane/propane cracker (MEED 15:7:05).

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).

Tecnimont has had a very successful year in the region. In early October, it received a letter of intent (LoI) from the local Sahara Petrochemical Companyto build its polypropylene (PP) and propane dehydrogenation (PDH) plant in Jubail together with South Korea's Daelim Industrial Company. It has also taken two linear-low density polyethylene (LLDPE)/HDPE swing plant EPC contracts in Iran, and together with South Korea's SK Engineering & Constructionis low bidder at $1,237 million for the Shuaiba aromatics complex in Kuwait (MEED 28:10:05; 7:10:05).