|
| Background |
Saudi Kayan Petrochemical CompanySaudi Kayan Petrochemical Company plans to develop a petrochemical complex in Jubail Industrial City, Saudi Arabia.
The complex will have a production capacity of 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 AramcoSaudi Aramco will provide the plant's ethane and butane feedstock.
The project will be carried out in several packages including major packages of Polypropylene, LDPE, HDPE, O&U, EO/EG, Phenolics, Amines and Polycarbonate packages.
Fluor CorporationFluor Corporation is the overall PMC and FEED study consultant. |
| Expected Events |
| Schedule |
Contract Phase/Phase |
Description |
| Q1 2012 |
EPC | Construction of the natural alcohol detergent plant expected to start and the LDPE and Amines plants expected to be completed.
|
| H2 2013 |
Completion | Project expected to be completed
|
|
| Latest Events |
In Q1 2012, construction of the alcohol detergent plant is expected to start and the LDPE and Amines plant are expected to be completed.
In H2 2013, the overall project is expected to be completed. |
| Previous Events |
In November 2011, the HDPE plant was completed.
In August 2011, the EPC contract for the natural alcohol detergent plant was awarded to Sinopec Engineering Incorporation.
In April 2011, trial operations at the main production packages were ongoing.
In March 2011, the polypropylene plant and the phenolics plant were completed.
In December 2010, trial operations at the HDPE plant, phenolics complex and the polycarbonate plant started.
In November 2010, the EO/EG plant was completed.
In August 2010, the project was under execution and the trial production at the EO/EG plant and the polypropylene plant started. Construction at the LDPE plant started.
In 2008, the EPC contracts for the eight major packages (LDPE, EO/EG, PP, Phenolics, Polycarbonate, O&U, HDPE and amines) were awarded.
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 KayanSaudi Kayan awarded Mohammed Al Mojil Group construction contracts. The contracts involve general construction works including civil, structural, electrical, instrumentation and piping.
In April 2006, the project company, Saudi Kayan Petrochemical CompanySaudi Kayan Petrochemical Company, was established to oversee the project.
In June 2005, the FEED contract was awarded to Fluor CorporationFluor Corporation for the whole complex.
In May 2005, the PMC contract was awarded to Fluor CorporationFluor Corporation for the whole complex. |
| Scope of Work |
Construction of a petrochemicals complex including:
- Ethylene Cracker
- Polycarbonate plant
- Phenolix complex
- Offsite facilities & Utilities (O&U)
- Polypropylene plant (PP)
- Linear Density Polyethylene (LDPE) plant
- HDPE plant and amines complex |
| Financing Source |
In March 2011, Saudi KayanSaudi Kayan signed a USD 533.3 million murabaha facility agreement with Banque Saudi FransiBanque Saudi Fransi to finance part of the construction costs of the project. The deal would have a maturity of up to 10 years.
In August 2010, Saudi KayanSaudi Kayan announced it secured a seven-year, USD 1.2 billion loan from National Commercial Bank (NCB)National Commercial Bank (NCB), to cover part of USD 2.5 billion in cost increases in building the project. The terms of the loan were not revealed by the company.
In July 2010, Saudi KayanSaudi Kayan was in the process of securing USD 2.5 billion loan that represents the 24% project cost increase.
In December 2008, Saudi KayanSaudi Kayan signed the last part of the USD 6 billion financing contract with Saudi Industrial Development Fund for a value of USD 533 million.
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 CompanyAl Kayan Petrochemical Company to finance part of the project.
In May 2007, Saudi KayanSaudi Kayan raised USD 6 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 ParibasBNP Paribas and HSBC Saudi ArabiaHSBC Saudi Arabia. The duration of the loan will be 15 years.
In May 2007, Saudi KayanSaudi Kayan offered an initial public offering (IPO) for a 45 % stake in its capital. |
| Contract Packages |
| Type |
Project Name |
Contract Value |
 |
Saudi Kayan - Jubail Petrochemicals Complex - Natural Alcohol Detergent Plant |
USD 130,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - Amines Plant |
USD 400,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - EO/EG Plant |
USD 500,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - HDPE Plant |
- |
|
Saudi Kayan - Jubail Petrochemicals Complex - LDPE Plant |
USD 426,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - Offsites and Utilities |
USD 600,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - Phenolics Complex |
USD 1,200,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - Polycarbonate Plant |
USD 1,300,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - Polypropylene Plant |
USD 341,000,000 |
|
Saudi Kayan - Jubail Petrochemicals Complex - Storage Tanks |
USD 79,000,000 |
|
| Project News |
|
|
| Schedule | Contract Phase/Phase | Description |
| May 2005 |
PMC | Contract awarded to Fluor CorporationFluor Corporation for the whole complex
|
| Jun 2005 |
FEED | Contract awarded to Fluor CorporationFluor Corporation for the whole complex
|
| Oct 2006 |
EPC | Contract awarded to CTCI Corporation for the Ethane Cracker (EO-EG) package
|
| Nov 2006 |
EPC | Contract awarded to Fluor CorporationFluor Corporation for the Offsites & Utilities (O&U) Package
|
| Jan 2007 |
EPC | Contract awarded to Simon Carves for the LDPE package | | | EPC | Contract awarded to Samsung Engineering Company for the polypropylene (PP) package
|
| Feb 2007 |
EPC | Contract awarded to Tecnicas Reunidas for the Phenolics package | | | EPC | Contract awarded to Daelim Industrial Company for Polycarbonate package
|
| Apr 2007 |
EPC | Contract awarded to Chinese HUANQIU Contracting & Engineering Corp. (HQCEC) for HDPE package
|
| May 2007 |
EPC | Contract awarded to Samsung Engineering Company for the amines package
|
| Oct 2010 |
Completion | Offsites and utilities package completed
|
| Nov 2010 |
Completion | Commercial production at the EO
EG plant started
|
| Dec 2010 |
Commissioning | Trial operations at the HDPE plant, phenolics complex and polycarbonate plant started
|
| Mar 2011 |
Completion | Polypropylene plant and phenolics complex completed
|
| Aug 2011 |
EPC | Contract for the natural alcohol detergent plant awarded to Sinopec Engineering Incorporation
|
| Nov 2011 |
Completion | HDPE plant completed
|
| Q1 2012 |
EPC | Construction of the natural alcohol detergent plant expected to start and the LDPE and Amines plants expected to be completed.
|
| H2 2013 |
Completion | Project expected to be completed
|
|
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