Three bid for $1bn contract to build cracker at Mesaieed

11 July 2008
Three groups have made technical bids to build a $1bn cracker at the planned petrochemicals complex at Mesaieed - the only such project likely to be awarded this year in the GCC.

The plant became the only ongoing cracker project in the region after Saudi International Petrochemical Company (Sipchem) shelved plans for its own Jubail cracker in June (MEED 20:6:08).

The three bids have been made to the joint venture of South Korea's Honam Petrochemical Corporation and Qatar Intermediate Holdings Company, a subsidiary of Qatar Petroleum.

The bidding groups are Germany's Linde with South Korea's Samsung Engineering Company; KBR of the US with GS Engineering & Construction of South Korea; and CBI Lummus Global of the US with Japan's Toyo Engineering Corporation and South Korea's Hyundai Engineering & Construction Company.

Commercial bids are due by the end of September.

The $1bn scheme covers the provision of technology and engineering, procurement and construction (EPC) of a 900,000-tonne-a-year (t/y) ethane/naphtha cracker (MEED 16:5:08).

The complex will produce 600,000 t/y of styrene monomer, 200,000 t/y of polystyrene and 700,000 t/y of polypropylene.

Expressions of interest have also been submitted for the four downstream EPC packages at the plant, with a prequalification shortlist due to be issued soon. The four contracts cover an aromatics facility, polyolefin units, an ethyl benzene styrene monomer plant and a world-scale olefins conversion unit (MEED 10:4:08).

More than 10 crackers have been built in the GCC since 2005.

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