Two to sign Al Jubail PP/PDH engg contracts

08 October 2001 00:00  [Source: ACN]

Samsung Engineering expects to receive notification from National Petrochemical Industrialisation Co (NPIC) by this month on the date for the official signing of two engineering contracts.

The contracts are for NPIC's propane-dehydrogenation - PP project in Al Jubail, Saudi Arabia, which is a joint venture with Basell Polyolefins (ACN 18 June, p33).

The two facilities will have a capacity of 450 000 tonne/year each. Saudi Polyolefins Co will be formed to operate the joint venture.

The first contract, which covers the engineering and procurement work of the project, will be signed by Samsung Engineering and ABB Lummus.

The second contract, which covers construction, will be signed by Samsung Engineering's subsidiary Samsung Saudi Arabia, and ABB Lummus' subsidiary Lummus Alireza.

ABB Lummus has completed basic engineering work. Detailed engineering work is being conducted by Samsung Engineering.

A Samsung Engineering source said it does not expect the heightened tensions in the Middle East to affect the development of the project.

However, he added that construction has to start in Q1 2002 in order for the project to start up on schedule at end-2003.

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