S Korea's Daelim to build $920m Sadara cracker in Saudi Arabia

27 July 2011 15:46  [Source: ICIS news]

LONDON (ICIS)--South Korea’s Daelim Industrial has won a $920.3m (€635m) contract to build the main mixed-feed cracker for what will be the world’s single largest petrochemicals construction project, it announced on Wednesday.

The cracker will feed a $20bn petrochemical complex being built at Al-Jubail on Saudi Arabia’s Gulf coast by Sadara Chemical Company, a joint venture involving state energy giant Saudi Aramco and US company Dow Chemical.

Daelim announced that it had won the engineering, procurement and construction deal in a regulatory filing to the South Korean stock exchange on Wednesday. It will design and build the cracker, which will produce 1.5m tonnes/year of ethylene and 400,000 tonnes/year of propylene, Daelim said in the filing.

The contract is worth a total of $920.3m. Of this, $670.6m will be paid to Daelim Industrial while the remaining $249.7m will be paid to its subsidiary, Daelim Saudi Arabia. No further details of the deal were provided in the filing and Daelim was not available for comment at the time of writing.

On 25 July, the joint venture partners behind the Sadara scheme said that they had approved the project. Construction of the facility will begin immediately and the first production units will come on line in the second half of 2015, with all units expected to be up and running in 2016, Aramco said in a statement announcing the project.

The complex will comprise 26 manufacturing units and include a world-scale cracker and production units for polyurethanes (isocyanates and polyether polyols), propylene oxide (PO), propylene glycol, elastomers, linear low density polyethylene (LLDPE), low density polyethylene (LDPE), glycol ethers and amines. It will produce more than 3m tonnes/year of high value-added chemical products and performance plastics, according to the joint venture partners.

($1 = €0.69)

By: Peter Salisbury
+44 20 8652 3214

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