DAMMAM, 21 November 2006 — Saudi International Petrochemical Company (Sipchem) has announced the award of the project management contract for its massive polyoelfins complex to Worley Parsons, Houston, and the financial advisory role to HSBC.
The massive, fully integrated olefins and derivatives complex will consist of a cracker unit that will produce 1.3 million metric tons per annum (mtpa) of ethylene and propylene. These basic olefins will be used in the production of 800,000 mtpa of polymers such as high density polyethylene (HDPE), low density polyethylene (LDPE), polypropylene (PP) and ethylene vinyl acetate (EVA). The project will complete the products integration to further down stream added-value performance products.
Sipchem and its potential partners in this project who signed the feedstock allocation letter with Saudi Aramco - Mitsui of Japan, DuPont of US and Lucite of UK - are working on the final agreements of the projects that are expected to be signed early next year, while start-up of projects will commence in 2011. The total production of the complex will amount to 3 million mtpa of 18 different products. The project will fulfill obligations scheduled and agreed with the Ministry of Petroleum and Minerals.
According to Sipchem Chairman Abdulaziz Al-Zamil, in line with Sipchem’s strategy to create new investment opportunities that stimulate economic and social development, the company continuously explores the prospects of phase-wise growth and expansion. Such projects add value to the abundant natural resources of the Kingdom, and create additional jobs for the growing number of Saudi youth. As per Al-Zamil, the entire complex, estimated to cost more than $ 7 billion, will consist of 20 world scale plants and will employ more than 3,000 personnel.
Sipchem Executive President Ahmad Al-Ohali says that Sipchem plans to establish a joint stock company to execute this giant project in line with the directives of relevant departments in the Ministry of Petroleum and Mineral Resources to engage a maximum number of Saudi citizens in these projects.
Meanwhile, Sipchem says that it has learned that Celanese Ltd. has filed a lawsuit against it and two of its affiliates in Texas, US. “Sipchem strongly denies Celanese’s claims that Sipchem has misappropriated Celanese’s alleged trade secrets in connection with Sipchem’s design and construction of its acetic acid manufacturing plant and vinyl acetate monomer manufacturing plant in Jubail. Sipchem intends to defend vigorously against Celanese’s claims. Contrary to those claims, which are baseless and without merit, the relevant Sipchem’s affiliates’ facilities have been designed and are being built using technologies properly licensed from Eastman Chemical and DuPont,” Sipchem said in a press release.