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| Background |
Saudi Kayan Petrochemicals complex is jointly developed by SabicSabic and Al Kayan Petrochemical CompanyAl Kayan Petrochemical Company to produce 5.6 million t/y of petrochemical products at Jubail Industrial City.
The estimated USD 10 billion Saudi Kayan complex will produce 1.35 million t/y of ethylene and 2.6 million t/y of finished products including polyethylene, polypropylene, ethylene glycol, polycarbonates and amines.
The complex will also produce aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene and polycarbonate which are produced for the first time in the region.
Saudi AramcoAramco will provide the plant's ethane and butane feedstock.
The project is being carried out in several packages including major packages of Polypropylene, LDPE, HDPE, O&U, EO/EG, Phenolics, Amines and Polycarbonate packages.
Fluor Corporation carried out FEED for the whole complex and is the Project Management Consultant (PMC). |
| Current Status |
In 2008, the EPC contracts for the eight major packages (LDPE, EO/EG, PP, Phenolics, Polycarbonate, O&U, HDPE and amines) have been awarded and under different stages of execution. Commissioning of the whole project is expected in 2010.
In February 2008, Shell Global Solutions was awarded a 3 years contract to prepare a start up program for the complex.
In December 2007, Saudi Kayan awarded Mohammed Al Mojil Group construction contracts worth 1.5 billion Saudi riyals (USD400 million). The contracts involve general construction works including civil, structural, electrical, instrumentation and piping.
In April 2006, the project company, Saudi Kayan Petrochemical Company, was established to oversee the project.
In June 2005, the FEED contract was awarded to Fluor Corporation for the whole complex.
In May 2005, the PMC contract was awarded to Fluor Corporation for the whole complex. |
| Scope of Work |
The complex comprises of Ethylene Cracker, Polycarbonate plant, Phenolix complex, Offsite facilities & Utilities (O&U), Polypropylene plant (PP), Linear Density Polyethylene (LDPE) plant, HDPE plant and amines complex.
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| Expected Schedule |
| Phase | Schedule | Description |
| Commissioning |
2010 | Project expected to be commissioned
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| Financing Source |
In May 2008, Saudi KayanSaudi Kayan signed a USD 6 billion financing contract with a group of banks and financial institutions for a period of 15 years.
In February 2008, the Public Investment Fund (PIF) approved a loan worth USD1.068 billion (SAR4 billion) to Al Kayan Petrochemical Company to finance part of the project. A financial closure is expected in May 2008.
In May 2007, Saudi KayanSaudi Kayan raised USD6 billion in loan to part-finance the project. Kayan will get USD 1 billion from the government's Public Investment Fund, while the rest is arranged by Samba Financial Group, Arab Banking Corporation, BNP Paribas and HSBC Saudi Arabia. SabicSabic has planned to complete the financing by end of 2007 or early 2008. The duration of the loan will be 15 years.
The company in early May 2007 offered an initial public offering (IPO) for a 45 percent stake in its capital. |
| Project Notes |
Saudi KayanSaudi Kayan also plans to establish an applications center which will focus on development of industrial products and applications, especially polycarbonate research and other new added value downstream industries in Saudi Arabia. |
| Related Projects |
| Type |
Project Name |
Contract Value |
 |
Saudi Kayan - EO/EG Plant |
USD 500,000,000 |
|
Saudi Kayan Amines Complex |
USD 400,000,000 |
|
Saudi Kayan HDPE Plant |
- |
|
Saudi Kayan LDPE Plant |
USD 300,000,000 |
|
Saudi Kayan Phenolics Complex |
USD 550,000,000 |
|
Saudi Kayan Polycarbonate Plant |
USD 1,300,000,000 |
|
Saudi Kayan Polypropylene Plant |
USD 341,000,000 |
|
Saudi Kayan Storage Tanks |
USD 79,000,000 |
|
Saudi Kayan- Offsites and Utilities |
USD 600,000,000 |
|
|
| Phase | Schedule | Description |
| PMC |
May 2005 | Contract awarded to Fluor Corporation for the whole complex
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| FEED |
Jun 2005 | Contract awarded to Fluor Corporation for the whole complex
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| EPC |
Oct 2006 | Contract awarded to CTCI Corporation for the Ethane Cracker (EO-EG) package | | | Nov 2006 | Contract awarded to Fluor Corporation for the Offsites & Utilities (O&U) Package | | | Jan 2007 | Contract awarded to Simon Carves for the LDPE package | | | Jan 2007 | Contract awarded to Samsung Engineering Company for the polypropylene (PP) package | | | Feb 2007 | Contract awarded to Tecnicas Reunidas for the Phenolics package | | | Feb 2007 | Contract awarded to Daelim Industrial Company for Polycarbonate package | | | Apr 2007 | Contract awarded to Chinese HUANQIU Contracting & Engineering Corp. (HQCEC) for HDPE package | | | May 2007 | Contract awarded to Samsung Engineering Company for the amines package
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- Samsung Engineering Company
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- HUANQIU Contracting & Engineering Corp. - HQCEC
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- CTCI Corporation
- Hyundai Engineering & Construction Company
- Samsung Engineering Company
- Toyo Engineering Corporation
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- CTCI Corporation
- Hyundai Engineering & Construction Company
- Samsung Engineering Company
- Toyo Engineering Corporation
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- Daelim Industries Company
- Simon Carves
- Tecnimont
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- Daelim Industries Company
- Simon Carves
- Tecnimont
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- JV of Tecnimont & Daelim Industrial Company
- Samsung Engineering Company
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- JV of Tecnimont & Daelim Industrial Company
- Samsung Engineering Company
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- Samsung Engineering Company
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- Daelim Industrial Company
- Fluor Corporation
- GS Engineering & Construction
- KBR Middle EastKBR Middle East
- Stone & Webster
- Tecnicas Reunidas
- Toyo Engineering Corporation
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- Daelim Industrial Company
- GS Engineering & Construction
- Stone & Webster
- Tecnicas Reunidas
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- Daelim Industrial Company
- GS Engineering & Construction
- Tecnicas Reunidas
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- Daelim Industrial Company
- GS Engineering & Construction
- Tecnicas Reunidas
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- Daelim Industrial Company
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| Commissioning |
2010 | Project expected to be commissioned
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|
Master Project | 
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