Dow keeps Ras Tanura timeline, but pauses on letting contracts

02 February 2010 20:53  [Source: ICIS news]

Liveris pauses on lettingHOUSTON (ICIS news)--Dow Chemical still plans to start up the first units at its Ras Tanura joint venture in 2014 or 2015 - but the company is pausing on letting contracts following news of falling prices, CEO Andrew Liveris said on Tuesday.

Prices have fallen for Middle Eastern engineering, procurement and construction (EPC) contracts, Liveris said during an earnings conference call.

"Saudi Aramco has some very big refinery projects that have just let that saw some substantial decreases in the EPC contracts," he said.

The price drop gave Dow reason to delay letting, Liveris said.

However, Ras Tanura is still on track for its first units to start by 2015, Liveris said. "Ras Tanura is moving ahead nicely on its milestones."

Dow may have more to say about the project by the middle of the year, he said.

Ras Tanura, being developed with Saudi Aramco, will have 60 units producing 28 commodities and specialty chemicals.

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