Page 14 - DMEA Week 20 2020

DMEA PETROCHEMICALS DMEA
Fluor to consult on $1.8bn Saudi PP plant
SAUDI ARABIA
AGIC has also awarded a series of contracts for technology.
SAUDI petrochemicals producer Advanced Global Investment (AGIC) has selected US firm Fluor as a project management consultant at its new propane dehydrogenation (PDH) and polypropylene (PP) project in the city of Jubail, valuedat$1.8bn.
Under a contract, Fluor will perform project management consultant services for front-end engineering design (FEED) and the engineering, procurement and construc- tion (EPC) phases of the project. Fluor did not say how much the deal was worth, but said it would be reflected in its first-quarter bookings.
“Fluor has supported clients and safely exe- cuted projects in Saudi Arabia for more than 70 years,” Fluor’s president for energy and chemi- cals, Mark Fields, said in a statement on May 15. “Our legacy of execution excellence continues with this most recent award from AGIC. We look forward to helping AGIC and the King- dom of Saudi Arabia meet the world’s grow- ing demand for polymers, and support their efforts to diversify its economy and also become one of the world’s leading global producers of polypropylene.”
Saudi Arabia wants to build up its petro- chemicals business to monetise domestic gas and establish a greater economic hedge against
oil market volatility.
AGIC in April signed a deal with South
Korea’s SK Gas to build and operate the PDH and PP plants. They will be capable of produc- ing 843,000 tonnes per year of propylene and 800,000tpyofPP.Thesematerialswillbeusedto manufacture speciality polymers for face masks and the automotive, pipe, food packaging and textile industries.
AGIC already produces 455,000 tpy of pro- pylene and 450,000 tpy of PP at existing facilities in Jubail, a major industrial city on Saudi Arabia’s east coast. Financing for the new project will be 25% funded by shareholders and 75% through borrowing from lenders. AGIC will have an 85% stake in the venture, while SK Gas will have 15%.
AGIC has also awarded a series of contracts for technology at the complex.
Lummus Technology, owned by McDer- mott, will deliver licensing for its proprietary CATOFIN technology for the PDH plant, while Dutch-registered LyondellBasell Industries will license its proprietary Spherizone and Spheripol technologies.
Construction is anticipated to begin in 2021, with the complex’s launch targeted for the sec- ond half of 2024. It will receive propane feed- stock from Saudi Aramco under a long-term contract. ™
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