Hyundai E&C Secures Contract for $11 Billion Petrochemical Plant in Saudi Arabia
- 10-Aug-2023 2:02 PM
- Journalist: Harold Finch
Six prominent international engineering companies have successfully secured contracts for the engineering, procurement, and construction (EPC) phase of the ambitious $11 billion Amiral petrochemical plant. This groundbreaking facility is slated to be seamlessly integrated into Saudi Arabia's extensive 460,000-barrel full-conversion refinery. The refinery in question belongs to Saudi Aramco Total Refinery & Petrochemicals Co. and is strategically situated in Jubail, just 70 kilometers northeast of Dammam city.
The green light for this substantial project came with the announcement of the final investment decision back in December, jointly endorsed by the project's stakeholders: TotalEnergies, a globally recognized multi-energy corporation, and the Saudi Arabian Oil Group, commonly known as Aramco. Their shared goal is to bring the Amiral petrochemical plant into reality.
According to the specifics provided by TotalEnergies, the upcoming plant will boast a mixed-feed cracker designed to handle a blend of 50% ethane and refinery off-gases. This configuration is projected to yield a remarkable annual production capacity of 1.5 million metric tons of ethylene.
The financial backing for the venture will include a substantial equity investment of at least $4 billion. This capital infusion will come from two major players: Aramco, with a substantial share of 62.5%, and TotalEnergies, holding the remaining 37.5%. The construction timeline initially targeted the commencement of construction in the first quarter of the current year, with operational readiness earmarked for 2027. While the awarding of EPC contracts for the primary process units and ancillary utilities is being hailed by TotalEnergies as the commencement of construction work, the precise start date remains undisclosed.
The impressive project roster includes South Korea's Hyundai Engineering & Construction Ltd., which has clinched a comprehensive contract valued at $5 billion. This mandate encompasses detailed design, procurement, construction, commissioning, and the vital start-up activities. Hyundai's responsibilities will also encompass the installation of a mixed-feed cracker, engineered to produce an additional 1,650 kilotons per annum of ethylene and associated industrial gases. Furthermore, Hyundai will facilitate the establishment of essential electricity and water utilities within the new complex.
Italian firm Maire Tecnimont and its subsidiary, Tecnimont Arabia Ltd., are poised to contribute significantly with a $2-billion EPC contract. Their mission is to construct two polyethylene units, integrating advanced dual loop technology, each with an impressive nameplate capacity of 500 kta. The contract scope extends to the deployment of derivative units, forming a comprehensive package that includes engineering services, material supply, construction activities, pre-commissioning, and commissioning.
Sinopec Engineering Group Saudi Co. Ltd., an affiliate of China Petroleum & Chemical Corp., is set to create a tank farm and execute the integration of supplementary facilities into the existing Saudi Aramco Total Refinery & Petrochemicals Co.'s infrastructure. Meanwhile, the transfer of pipelines at the SATORP platform has been entrusted to Gulf Consolidated Contractors Co., and the installation of pivotal industrial support facilities will be handled by Mohammed Ali Al-Suwailem Trading & Contracting Co.
Although the exact financial figures of these contracts remain undisclosed, the significance of these engagements is undeniable. In addition to the economic impact, these initiatives are anticipated to collectively generate around 7,000 direct and indirect employment opportunities within Saudi Arabia, further reinforcing the transformative potential of this groundbreaking petrochemical plant endeavor.