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Dow and Saudi Aramco continue to award Sadara packages

$20 billion Sadara project takes momentum in Al Jubail

With 26 major production units, The Dow Chemical (Dow) and the Saudi National Oil Company Saudi Aramco are building up the world’s largest integrated petrochemical complex in Al Jubail Industrial City, in Al Sharqiya, 100 kilometers northwest Dammam in Saudi Arabia.

Dow and Saudi Aramco expect their $20 billion capital expenditure to generate $10 billion revenues per year over the first 10 years of production.

The Sadara Chemical Company has been established as 50/50 joint venture by Dow and Saudi Aramco.

For Saudi Arabia the purpose of the Sadara project is to reduce its reliance on the crude oil and natural gas markets in developing a downstream economy locally.

Sadara will also create thousands of direct and indirect jobs for Saudis.

By its size and diversity of the proposed petrochemical portfolio, Dow and Saudi Aramco introduce with Sadara a step change in Saudi Arabia upstreamdownstream integrated oil value chain with export to be shared between Asia 45%, Europe 10% and Middle East 25%.

KBR completed the FEED for Sadara FID in 2011

Dow and Saudi Aramco started to work on the Sadara project in 2007.

At that time it was called Ras Tanura, as to be located there.

But during the front end engineering and design (FEED) awarded in the meantime to KBR, Dow and Saudi Aramco had to relocate the project to the Al Jubail Industrial City.

In this new context, Dow and Saudi Aramco could make the final investment decision (FID) in July 2011.

According to the FEED performed by KBR, Sadara is designed to produce:

 – 1.5 million t/y of Ethylene

 – 400,000 t/y of Propylene

 – Low Density Polyethylene (LDPE)

 – Linear Low Density Polyethylene (LLDPE)

 – Propylene Glycol (PG)

 – Propylene Oxide ( PO)

 – Glycol Esthers

 – Polyurethane

 – Amines

 – Elastomers

 – Analine,

 – Methylene di-para phenylene isocyanate (MDI)

 – Mononitrobenzene (MNB)

 – Toluene di-isocyanate (TDI)

 – Formaline

 – Dinitrotoluene (DNT)

The feedstock for the propylene oxide (PO) unit will be sourced from a coming greenfield hydrogen peroxide plant to be constructed by the 50/50 joint venture between Sadara and Solvay.

Dow and Saudi Aramco are planning to complete the construction of Sadara on early 2015 for commercial operations in 2016 and awarded Project Management Consultant (PMC) contract to KBR through its local affiliate  KBR-AMCDE.

Daelim won the EPC contract for Sadara mixed cracker

Because of the uncertainty over a long period of time about the price and availability of the natural gas, KBR designed the Sadara complex to accept mixed feedstock of naphtha or ethane.

With a capacity of 3 million t/y, the mixed cracker will receive its feedstock of naphtha and natural gas liquids (NGL) from the Saudi Aramco Total Refining and Petrochemical Company’s (SATROP) to start operations in 2013 next door in the Al Jubail Industrial City.

Daelim from South Korea won the  $920 million engineering procurement and construction (EPC) contract in following the FID in July 2011.

This mixed cracker EPC contract has been awarded on a lump sum turn key (LSTK) basis.

In addition Daelim submitted the lowest offer around $2.5-3 billion for six other Sadara EPC packages including:

 – Analine

 – Methylene di-para phenylene isocyanate (MDI)

 – Mononitrobenzene (MNB)

 – Toluene di-isocyanate (TDI)

 – Formaline

 – Dinitrotoluene (DNT).

 On this six packages, Sadara is conducting the due diligence on Daelim before award. 

$2 billion Offsites and Utilities EPCM contract to Fluor

Foster Wheeler performed the FEED for this $2 billion capital expenditure Offsites and Utilities package.

In August 2011, Dow and Saudi Aramco awarded the engineering procurement and construction Management (EPCM) contract to Fluor.

In that EPCM role, Fluor will manage the development of Sadara associated infrastructure and pipework arrangements to allow the construction of the integrated petrochemical complex.

Polyethylene EPC to Tecnimont and EPCM to Jacobs 

In June 2012, Jacobs Engineering Group Inc. (Jacobs) has been awarded the EPCM contract for the Sadara three polyethylene trains.

Under the terms of the agreement, Jacobs’ scope of work for the project includes the:

 – Construction management

 – Field engineering support

 – Management of the Lump Sum Procure Build (LSPB) construction contractors

 – Field materials management

Jacobs’ office in Al Khobar, Saudi Arabia, will perform this EPCM contract. 

In July 2012, Maire Tecnimont has been awarded the contract for $360 million on a LSTK basis for the engineering procurement and construction (EPC) of the High Pressure Low Density Polyethylene (HP-LDPE) plant.

In Arabic “Sadara” means “Leadership“, after the packages awarded to JGC, Larsen & Toubro, Linde, Tecnicas Reunidas, Dow and Saudi Aramco are increasing momentum toward their petrochemical global Market Leadershipwith other the packages contracted to Fluor, Jacobs and Tecnimont.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

12 Comments to “Dow and Saudi Aramco continue to award Sadara packages”

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    • Dear sir.
      I want to know weather sadara project include an epoxy plant or not.
      I look forward to your reply.

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  5. would like to know the exact quantities that would be commercially available for all these products as i fail to understand why sadara till tody is so conservative to share this with public.

    Mohamud

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