Design work delayed for Dow, Aramco Ras Tanura jv - report

13 April 2009 21:25  [Source: ICIS news]

HOUSTON (ICIS news)--Design work for Dow Chemical and Saudi Aramco's $20bn (€15bn) Ras Tanura petrochemical project has been delayed for at least three months, according to a press report on Monday.

Dow and Saudi Aramco were developing the project under a joint venture (jv). When completed, Ras Tanura would have 60 units producing 28 commodity and specialty chemicals.

Completion of the Ras Tanura's preliminary design and engineering will not be completed until the first or second quarter of 2010, Reuters reported, quoting an unnamed source. Initially, the design and engineering would be completed by the end of 2009.

Earlier this year, a Saudi Aramco executive said the company should have an engineering, procurement and construction (EPC) contract awarded by 2010. Operations could start by 2014.

Saudi Aramco is also delaying a refinery expansion project that would provide feedstock for the joint venture petrochemical project, Reuters reported. No new deadline was given.

Neither Dow nor Aramco immediately responded to requests for comments.

($1 = €0.76)

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By: Al Greenwood
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