26 March 2014 11:44 [Source: ICIS news]
LONDON (ICIS)--Maire Tecnimont and Netherlands-based contractor Archirodon have won an engineering contract worth $1.7bn-1.95bn for the development of utilities, water treatment and power for the cracker complex being developed in Egypt by Carbon Holdings, the Italy-based engineering firm said on Wednesday.
Fifty per cent of the engineering, procurement, construction and commissioning (EPCC) contract for work on the Tahrir petrochemicals complex will be booked by Maire Tecnimont, while Emirates-based engineer Drake & Scull International is likely to join the partners to provide some local services for the project, the company added. Archirodon’s stake was not disclosed.
Maire Tecnimont will book its stake of the project following financial close, which is expected by the end of 2014, according to the company. Italy’s export credit agency SACE is considering providing project finance, the company added.
To be based in Ain Sokhna, the Tahrir naphtha cracker and olefins complex is forecast to produce 1.36m tonnes/year of ethylene and polyethylene, as well as quantities of propylene, benzene, butadiene and linear alpha olefins, according to US-headquartered GE, which signed a technology and equity support contract for the project in late 2013. It is estimated that the petrochemicals naphtha cracker and olefins complex will cost $4.9bn.
Maire Tecnimont CEO Pierroberto Folgiero said that the complex, which is expected to increase Egypt’s petrochemicals export levels by more than 25%, is “a project that is going to reshape the petrochemical market dynamics in the region".
Maire Tecnimont is to develop a sea water desalination system, a wastewater treatment unit, sea works, tank farm jetty works, power plant, auxiliary systems and a “utilities island”.
Archirodon is to focus on the engineering, procurement and construction supply of sea works, tanks, jetty works and pipelines, as well as construction of all remaining facilities, Maire Tecnimont added.
Carbon Holdings is described as an industrial developer and operator implementing downstream oil and gas projects in Egypt.
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