10 July 2013 10:39 [Source: ICIS news]
DUBAI (ICIS)--SABIC has awarded Spanish engineering firm Dragados a $387m (€302m) contract to design and build a new 50,000 tonne/year polyoxymethylene (POM) or polyacetal plant in Saudi Arabia, the Middle Eastern petrochemical giant said on Wednesday.
“The engineering activities by Dragados are scheduled to begin in August 2013 while the project is expected to get completed during the first quarter of 2016,” SABIC, the world’s biggest petrochemicals group by market value, said in a filing to the Saudi Stock Exchange.
Dragados beat China National Chemical Engineering Co (CNCEC), Taiwan's CTCI and South Korea's Hanwha Engineering for the SABIC contract.
Meanwhile, SABIC said that its polyacetal plant, which is a part of its National Methanol Co project, is behind schedule.
“Engineering activities have been delayed since the company has to complete a study on economic feasibility as well as certain agreements related to the project to curtail financial impact,” it said.
National Methanol, better known as Ibn Sina, is 50%-owned by SABIC, while Celanese and an affiliate of Duke Energy Corp each hold a 25% stake.
SABIC said the project cost will be financed through partners and commercial loans.
“The trial operation of the project is expected to run during the second quarter of 2016 for a period ranging between three to six months and the commercial operation will start by the fourth quarter, the same year,” it added.
The POM plant will receive methanol feedstock from Ibn Sina. POM is an engineered performance chemical product specifically used in automotive industries, as well as in mechanical and construction fields. It also has many other industrial applications.
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