21 October 2003
Project Management & Development Co. (“PMD”) based in Al-Jubail, Eastern Province, Saudi Arabia, announces that it has received a notice of allocation of feedstock from Saudi Arabian Oil Company (“Saudi Aramco”). This follows a review by Saudi Aramco of PMD’s project proposal and its acceptance of PMD’s planned integrated petrochemicals complex project.
PMD’s project will be the largest private sector petrochemical project in the Middle East with an expected total investment of US$3.5 billion. The business plan envisages that PMD will crack the allocated feedstock, comprising ethane and mixed butanes, and will produce 1,350 KTA of ethylene in addition to commercial quantities of propylene and benzene. This ethylene, which is expected to have a significantly competitive cash cost of production, since PMD enjoys the benefit of low feedstock costs in line with the Kingdom of Saudi Arabia's policies, will provide the basis for the production of several downstream products in world-scale polyethylene, polypropylene and ethylene glycol plants. These plants will form part of a single integrated complex, located within the Royal Commission's industrial area at Al-Jubail. In addition, the project is expected to produce bisphenol and amines at the integrated complex. Scheduled start up date is expected in early 2008.
PMD envisages that the project will be developed jointly with one or more international partners. PMD will shortly approach selected potential partners on a formal basis, many of whom have already contacted PMD to express interest in the project. Joint venture partners are expected to provide key operational and technical support to the project company including operation and maintenance of the plant and product offtake. The project economics suggest that the project company is likely to generate an attractive return on investment for PMD and its partners, which are also expected to include selected Saudi and GCC shareholders.
PMD has previously announced the appointment of Arab Banking Corporation (B.S.C.) as strategic and financial advisor for the project. Specialised consultants and advisors have also now been appointed, including Clifford Chance in conjunction with the Al Jadaan Law Firm in Riyadh, CMAI, Foster Wheeler, and Ernst & Young, evidencing PMD’s commitment to, and belief in, the success of the project.
PMD is a private sector company established by Saudi businessmen and engineers with substantial expertise and experience in the petrochemicals industry
-Ends-
For further information, contact:
Mr. Majed A. Al- Ahmadi,
President & CEO
Project Management & Development Company Ltd.
PO Box 11314,
Al- Jubail,
31961,
Kingdom of Saudi Arabia
Telephone: + 9663 347 0008;
Facsimile: + 9663 347 6664;
E-mail: pmc@anet.net.sa
Project Management & Development Co. (“PMD”) based in Al-Jubail, Eastern Province, Saudi Arabia, announces that it has received a notice of allocation of feedstock from Saudi Arabian Oil Company (“Saudi Aramco”). This follows a review by Saudi Aramco of PMD’s project proposal and its acceptance of PMD’s planned integrated petrochemicals complex project.
PMD’s project will be the largest private sector petrochemical project in the Middle East with an expected total investment of US$3.5 billion. The business plan envisages that PMD will crack the allocated feedstock, comprising ethane and mixed butanes, and will produce 1,350 KTA of ethylene in addition to commercial quantities of propylene and benzene. This ethylene, which is expected to have a significantly competitive cash cost of production, since PMD enjoys the benefit of low feedstock costs in line with the Kingdom of Saudi Arabia's policies, will provide the basis for the production of several downstream products in world-scale polyethylene, polypropylene and ethylene glycol plants. These plants will form part of a single integrated complex, located within the Royal Commission's industrial area at Al-Jubail. In addition, the project is expected to produce bisphenol and amines at the integrated complex. Scheduled start up date is expected in early 2008.
PMD envisages that the project will be developed jointly with one or more international partners. PMD will shortly approach selected potential partners on a formal basis, many of whom have already contacted PMD to express interest in the project. Joint venture partners are expected to provide key operational and technical support to the project company including operation and maintenance of the plant and product offtake. The project economics suggest that the project company is likely to generate an attractive return on investment for PMD and its partners, which are also expected to include selected Saudi and GCC shareholders.
PMD has previously announced the appointment of Arab Banking Corporation (B.S.C.) as strategic and financial advisor for the project. Specialised consultants and advisors have also now been appointed, including Clifford Chance in conjunction with the Al Jadaan Law Firm in Riyadh, CMAI, Foster Wheeler, and Ernst & Young, evidencing PMD’s commitment to, and belief in, the success of the project.
PMD is a private sector company established by Saudi businessmen and engineers with substantial expertise and experience in the petrochemicals industry
-Ends-
For further information, contact:
Mr. Majed A. Al- Ahmadi,
President & CEO
Project Management & Development Company Ltd.
PO Box 11314,
Al- Jubail,
31961,
Kingdom of Saudi Arabia
Telephone: + 9663 347 0008;
Facsimile: + 9663 347 6664;
E-mail: pmc@anet.net.sa
© Press Release 2003
