United Jubail to retender alpha olefins plant

28 March 2003
Preparations are under way at Jubail United Petrochemical Company (United)to retender the engineering, procurement and construction (EPC) contract to build an alpha olefins plant after bids submitted last year exceeded the client's budget. United,a subsidiary of Saudi Basic Industries Corporation (Sabic), is now working out ways to reduce the cost of the package(MEED 24:5:02).

Revised bids for the 150,000-tonne-a-year (t/y) plant are expected to be submitted by mid-year, with a final contract award anticipated in late summer. Among the companies expected to bid for the estimated $90 million contract are South Korea's Samsung Engineering Corporation, Japan's Mitsubishi Heavy Industriesand Germany's Linde, all of which were among last year's prequalified firms.

United has already selected Alpha-Sablin technology, jointly developed by Linde and Saudi Basic Industries Corporation (Sabic), for the project.

The contract is the last EPC package still to be awarded on United's complex, following the selection of contractors for the ethylene and ethylene oxide/ethylene glycol (EOEG) plants last year. The company has also made two awards for the offsites and utilities packages.

In addition to alpha olefins, the United complex will produce 1 million t/y of ethylene and 650,000 t/y of EOEG. The project manager for the scheme is the US' Fluor Daniel.

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