Toyo wins YanSab EG

29 July 2005
Japan's Toyo Engineering Corporation on 14 July received a letter of intent from Saudi Basic Industries Corporation for the contract to build a large-scale ethylene glycol (EG) plant as part of its YanSab petrochemicals complex at Yanbu (see Banking & Finance; MEED 24:6:05).

Toyo won the engineering, procurement and construction (EPC) contract to build the 700,000-tonne-a-year (t/y) EG unit against competition from Germany's Lindeand South Korea's Samsung Engineering Company. The decision was widely anticipated after Linde and Samsung won a joint order by the local Tasnee Petrochemicals to build an ethane/propane cracker a week earlier, increasing both companies' workload significantly. The project, which is worth an estimated $400 million, is due for completion by 2008 (MEED 15:7:05).

The next units to be awarded under the YanSab programme will be for polypropylene (PP) and linear low-density polyethylene (LLDPE). The contenders for the EPC contract covering the construction of the 400,000-t/y LLDPE unit and the 350,000-t/y PP unit are understood to be Oslo-based Aker Kvaernerand Linde. A high-density polyethylene (HDPE) unit, for which Uhdeis carrying out front-end engineering and design (FEED) works, is due go to tender in the second half of the year.

Paris-based Technip in May won the EPC-cum-technology supply contract to build the project's ethane/propane cracker (MEED 13:5:05).

US-based Fluor Corporationwill carry out the $650 million-700 million offsites and utilities package on the development, while US-based Foster Wheeleris the project management consultant (PMC) on the project. ABN Amrowith Saudi Hollandi Bankis the financial adviser.

www.meed.com/petrochemicals

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