Delays hold up EurOPE 1

05 December 2005 00:01  [Source: ICB]

Sabic Europe is experiencing construction constraints that are causing cost over-runs and delays to its planned €1.5bn olefins and polyolefins projects in the Netherlands and Germany, according to the chief executive Frans Noteborn.

Sabic had hoped to make a final decision on its EurOPE 1 project in the first quarter of 2006 (ECN 2 May), but Noteborn said that difficulties in obtaining firm estimates and delivery dates from contractors and equipment suppliers would delay a final decision.

Noteborn said: ‘Developments so far are favourable, but we only want to move ahead if we have risks well under control and tied together.’

He added that the project was still on track for a start-up in 2009 but there was a high chance the cost could exceed the projected €1.2bn at Geleen in the Netherlands and €300m at Gelsenkirchen, Germany. ‘We are now working with our contractor [Technip] to come up with final numbers,’ he said.

Noteborn said the high level of oil, gas and petrochemical construction activity, particularly in the Middle East, was having an impact on contractor availability and scheduling for EurOPE 1. Higher steel prices were also a factor.

EurOPE 1 includes 1m tonne/year of additional naphtha cracker capacity at Geleen, which will yield an additional 400 000 tonne/year of ethylene, 620 000 tonne/year of propylene, 200 000 tonne/year of benzene and 310 000 tonne/year of ethyl tertiary butyl ether.

Sabic’s plans also include a 400 000 tonne/year propylene co-polymer unit and a 400 000 tonne/year ldPE plant in Geleen and a 250 000 tonne/year bimodal hdPE plant, using Basell’s Hostalentechnology, in Gelsenkirchen.

Noteborn: final decision delayed

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