News dalla rete ITA

15 Aprile 2021

Arabia Saudita

ITALIAN FIRM WINS SAUDI PETROCHEMICALS PROJECT

Italian contractor Maire Tecnimont has announced being awarded a $500m contract by Saudi Arabia’s Advanced Global Investment Company (AGIC) to build two polypropylene units as part of its planned petrochemicals project in Jubail.Engineering, procurement and construction (EPC) works on the package to build a propane dehydrogenation (PDH) plant and a propylene (PP) plant are expected to be completed by the second quarter of 2024, Maire Tecnimont said in a statement.The two polypropylene units will have a production capacity of 400,000 tonnes a year (t/y) each, the Italian contractor said.As part of its lump sum turnkey contract, Maire Tecnimont said two of its subsidiaries will manage different aspects of project execution.Tecnimont SPA will provide engineering services, equipment and ‘out-of-kingdom’ material supply, while Tecnimont Arabia will manage ‘in-kingdom’ material supply, erection and construction activities up to start up and guarantee test run of the plants. MEED previously reported that contractors submitted bids by 31 January for the EPC works on the estimated $1.9bn project, planned to be built in Jubail’s Second Industrial City (Jubail 2) in Saudi Arabia's Eastern Province.The other contractors understood to have submitted bids for the project include:Fluor Corporation (US)Hyundai Engineering & Construction (South Korea)Samsung Engineering (South Korea)Sinopec Engineering Group/Sinopec Services (China)SK Engineering & Construction (South Korea)Greenfield petrochemicals complexSaudi Arabia’s privately owned Advanced Petrochemical Company and South Korea’s SK Gas Company signed a memorandum of understanding (MoU) in March 2020 to build a petrochemicals complex that will feature a PDH plant and a PP plant in Jubail.As part of the agreement, Advanced Petrochemical's subsidiary AGIC and SK Gas Petrochemical, an affiliate of SK Gas Company, entered into a joint venture arrangement for development of the proposed polypropylene production facility.AGIC is the majority shareholder in the joint venture named Advanced Polyolefins Company, holding an 85 per cent equity stake, while the remaining 15 per cent is owned by SK Gas Petrochemical.Advanced Petrochemical had earlier said the plants will have the combined capacity to produce more than 1.6 million t/y of PDH and PP compounds.The complex is expected to manufacture 843,000 t/y of propylene and 800,000 t/y of polypropylene, which will be used for the production of specialty polymers for the face mask, automotive, pipes, food packaging and textiles industries.Advanced Petrochemical currently produces close to 600,000 t/y of polypropylene from its main facility in Jubail. It receives feedstock from Saudi Aramco and propylene feedstock from the Saudi Aramco Total Refinery & Petrochemical Company (Satorp) refinery in Jubail.In April 2020, MEED reported that Advanced Petrochemical was conducting pre-feasibility studies for a project to double its polypropylene production capacity.In May last year, US-headquartered Fluor Corporation said it had been awarded a contract by the project operator joint venture to provide project management consultancy (PMC) services for the project.The project operators awarded the front-end engineering and design (feed) contract to South Korea’s SK Engineering & Construction (SK E&C).Also in May, the JV awarded US energy contractor McDermott International’s subsidiary Lummus Technology a contract to provide licence technology and basic engineering for a C3 CATOFIN unit as part of the project.Furthermore, Advanced Petrochemical said in a statement to the Saudi Stock Exchange (Tadawul) on 8 October last year that it intends to increase the scope of the Jubail project by adding an isopropanol plant to the complex.Advanced Petrochemical said the isopropanol plant, which will have an output capacity of 70,000 t/y, will be built at a cost of $80m. As a result of this capacity addition, the overall cost of the project will go up to $1.88bn.On 6 December, Advanced Petrochemical said in a filing with the Tadawul that it had received approval for a loan facility of SR3bn ($800m) from the Saudi Industrial Development Fund (SIDF), which will be used to fund the Jubail project. (ICE RIYADH)


Fonte notizia: Meed