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SAAC, Kayan and Sadara to decide soon on Jubail n-Butanol

SAAC leads partners to award $500 million NBA EPC

Saudi Acrylic Acid Co (SAAC) and its partners, Saudi Kayan Petrochemical (Saudi Kayan) and Sadara, are reaching the last stage of the bids clarifications submitted by the engineering companies for the n-butanol (NBA) project planned in Al Jubail Industrial City.

This n-Butanol plant is a greenfield project where many parties are involved through a cascade of joint ventures.

The leader of the partners is Saudi Acrylic Acid Company (SAAC), a joint venture between Sahara Petrochemicals (22%), Tasnee Sahara Operating Company (65%), and Tasnee (13%).

TASNEE stands for The National Industrialization Company established in 1985, as the first joint-stock industrial company fully owned by the private sector.

As Sahara and Tasnee have also shares in Tasnee Sahara Operating Company, Sahara owns an additional indirect 21.16% in SAAC giving Sahara an aggregate 43.16% shareholding.

The other major stakeholder of the n-Butanol project is Sadara, the joint venture between Saudi Aramco and Dow Chemical actually implementing the construction of the $20 billion largest petrochemical project ever built in one time.

The third partner of the n-Butanol project is Saudi Kayan, SABIC affiliate with 35% interests where Al-Kayan Petrochemical Company holds 20% and the remaining part is left to public.

Already based in the Jubail Industrial City, the Saudi Kayan’s petrochemical complex is one of the largest in the world producing all the building blocks of the petrochemical industry Ethylene, Propylene , Polyethylene ,Polypropylene, Ethylene Glycol, Natural Detergent Alcohol, Bisphenol-A, Acetone and their derivatives.

Each one of the three partners Saudi Kayan, Sadara and SAAC will hold 33.3% stake in the n-butanol (NBA) plant.

Since this greenfield project was decided to be integrated in the existing SAAC complex of Al Jubail Industrial City, the partners agreed to take SAAC as the operator of the joint venture.

This new n-butanol (NBA) facility would have a capacity of 330,000 t/y.

n-butanol (NBA) stands for normal butanol, abbreviated as NBA, and is mostly used as an ingredient to produce other petrochemical products.

Most common applications integrate n-butanol (NBA) as a plasticizer for water-based coatings or to formulate cosmetics.

Daelim, Samsung-Linde and Tecnimont in competition

The basic engineering has been carried out by Dow Chemical, which is also the technology provider

From the project feasibility study, SAAC and its partners Saudi Kayan and Sadara estimated the capital expenditure of the al Jubail n-butanol (NBA) project to get close to $500 million.

Then in respect with the unusual large number of parties involved in the project, the partners had agreed to organize the call for tender of the engineering, procurement and construction (EPC) contract a Lump Sum Turn Key (LSTK) basis.

This decision may have contributed to reduce the number of pre-qualified engineering companies and to submit an offer and to slow down the whole process.

Anyway, the planning of the n-Butanol project had to be adjusted continuously to be integrated in the hydrocarbons value chain between the existing SAAC, Saudi Kayan facilities and the coming Sadara complex.  

Finally only three engineering companies submitted an offer for the EPC contract:

 – Daelim Industrial from South Korea

 – Maire – Tecnimont from Italy

 – Linde and Samsung Engineering from Germany and South Korea in consortium

In order to match with the implementation of the different packages in Sadara, SAAC and its partners, Saudi Kayan and Sadara are targeting a decision in November in expecting the completion of the Al Jubail n-Butanol plant on the second half of 2014.

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1 Comment to “SAAC, Kayan and Sadara to decide soon on Jubail n-Butanol”

  1. Any news about the main automation vendor for this project.

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