Alujain Advances Contract for Petrochemical Project at Yanbu

Alujain Corp.'s subsidiary, Alujain National Industrial Co. (LNIC), has taken a significant step in advancing its integrated propane dehydrogenation (PDH) and polypropylene (PP) project in Yanbu Industrial City, located in Saudi Arabia's Medina province. This milestone involves the awarding of a contract to Samsung Engineering Co. Ltd. for front-end engineering and design (FEED) services. The project aims to bolster the production of propylene and polypropylene in the region.

As of September 27, Samsung Engineering is tasked with providing FEED services for two key units within the project—a 600,000-tonne/year (tpy) PDH plant and a 500,000-tpy PP plant. Additionally, the scope of Samsung Engineering's responsibilities encompasses FEED services for the essential utilities and offsite infrastructure required for the entire project. The contract's total worth stands at $19.428 million. Notably, this contract follows Samsung Engineering's successful completion of preliminary FEED work for the PDH-PP project.

The decision to award the FEED contract for the PDH-PP project comes on the heels of LNIC's strategic move to license cutting-edge technologies for the venture. In early May, LNIC entered into a contract with Lummus Technology LLC, securing licensing rights to its proprietary C3 CATOFIN process technology for the planned PDH unit. This unit is designed to produce propylene, which will serve as the feedstock for the upcoming PP unit. The move underscores LNIC's commitment to adopting advanced technologies to enhance the project's efficiency and productivity.

Furthermore, on May 30, LyondellBasell Industries Holdings BV confirmed that it had been awarded a contract by LNIC. This contract includes the licensing of LyondellBasell's proprietary Spherizone process technology and the supply of its proprietary Avant ZN catalyst for the new PP unit within the PDH-PP project. These technologies represent state-of-the-art advancements in the production of polypropylene.

It's worth noting that LNIC's PDH-PP project is set to be established adjacent to the existing 400,000-tpy PDH-PP plant operated by National Petrochemical Industrial Co. (NatPet), another subsidiary of Alujain. This existing facility benefits from the service provider's proprietary Spheripol PP process technology, demonstrating Alujain's continued commitment to technological excellence.

In a November 2022 notice to investors, Alujain disclosed that upon completion, the new PDH-PP project is projected to yield over 600,000 tpy of PP, PP compounds, and specialized construction materials derived from PP derivatives. Additionally, it is expected to produce approximately 25,000 tpy of saleable hydrogen, contributing to the diversification of the product portfolio.

LNIC's forward-thinking approach extends beyond production capacity. The project includes the implementation of a grid to integrate the new units seamlessly with NatPet's existing facilities. This integration is intended to enhance the reliability, efficiency, and overall profitability of both subsidiaries.

Alujain, with an estimated total project cost of around $2 billion, envisions the new PDH-PP plant to commence operations during the first half of 2026. This strategic move not only aligns with the company's growth objectives but also reflects its commitment to sustainable development in the petrochemical industry. As the project progresses, it is poised to make a substantial impact on propylene and polypropylene production in the region, further cementing Alujain's position as a leader in the industry.