Tasnee, Sahara, SIPCHEM, in Partnership with Basell Polyolefins Award Ethylene Cracker Project to Linde and Samsung

Published July 20th, 2005 - 01:20 GMT

Tasnee Petrochemicals Company (Tasnee), Sahara Petrochemicals Company (Sahara) and the Saudi International Petrochemical Company (SIPCHEM), in partnership with Basell Polyolefins announced the awarding of the Ethylene cracker and utilities project to Linde AG of Germany and Samsung Engineering Company of South Korea. The project award ceremony was held in the Riyadh headquarters of the Saudi Arabian General Investment Authority (SAGIA). It was attended by HH Prince Saud Bin Thunayyan, President of the Royal Commission for Jubail and Yanbu (RCJY), and HE Amr Abdullah Al Dabbagh, Governor of SAGIA, as well as senior industry officials.

“In line with SAGIA’s vision to promote investments in the strategic petrochemical sector, today’s signing represents a milestone in that direction. Given Saudi Arabia’s competitive advantage in petrochemicals, SAGIA aims to promote investments in this industry to double the country’s petrochemical share from the global output which currently stands at 7% to 13% by decade end,” commented Governor Al Dabbagh.

“Awarding this project is a milestone leading up to the realization of this gargantuan petrochemical complex, which upon completion will carry a $2,400 million price tag,” commented Mubarak AlKhafrah, Chairman of Tasnee Petrochemicals.

The project will be constructed in Jubail Industrial City where all the required utilities and services are available. The partners have already secured needed allocation of hydrocarbon gases from Saudi Aramco to supply the project with feedstock and fuel. The annual production capacity is 1,000,000 tons of ethylene and about 300,000 tons of propylene using Linde technology.

Ethylene is the main building block for petrochemicals and among its derivatives are polyethylene and vinyl acetate monomer. A number of petrochemical industries utilize propylene including polypropylene. As well as the ethylene plant, this large complex will include polymerization plants to produce high and low density polyethylene and polypropylene in addition to supplying the ethylene requirements of VAM and polypropylene production.

The complex spells rewarding job opportunities for the Saudi workforce. Expected manpower requirement is around 700. Construction work is expected to start by the first quarter of 2006 while operations are to start by the second half of 2008.

The project represents an economic and a national industry development. For having helped make this a reality, the partners thanked the Ministry of Petroleum and Mineral Sources, the Royal Commission for Jubail and Yanbu, the Saudi Arabian General Investment Authority, the Ministry of Finance, the Ministry of Commerce and Industry, the Saudi Industrial Development Fund, Saudi Aramco and the Offset Committee.

The Saudi Arabian General Investment Authority (SAGIA) is a service entity aiming to provide services and facilities to promote investment and economic development in the Kingdom of Saudi Arabia (KSA). SAGIA was constituted in April 2000 under the directives of the Supreme Economic Council (SEC) as a catalyst to promote inward investments, facilitate exchange of best practice between the public and private sectors, act as an intermediary between the global community and the Saudi Government and its ministries and agencies. It also aims to contribute to economic policy-making substantiated by research and strategic criteria.

SAGIA’s role is complementary and supportive to the bodies directly concerned with the various investment sectors and working to finalize the investors’ procedures. SAGIA’s mission is to create a pro-business environment, providing comprehensive services to investors and foster investment opportunities in energy, transportation and knowledge-based industries. For more information on SAGIA please visit www.sagia.gov.sa.

About Tasnee
Tasnee Petrochemicals Company (Tasnee) is a Saudi joint stock company and already has an operational joint venture with Basell Polyolefins to produce propylene and polypropylene. Tasnee is also working on a number of fronts developing other petrochemical projects.

The Saudi International Petrochemical Company (SIPCHEM) is a joint stock company developing a number of petrochemical projects; it has a Methanol project in operation.

About Sahara
Sahara Petrochemicals Company is a Saudi joint stock company working on the establishment of petrochemical projects, among which is a large project to produce propylene and polypropylene with the participation of Basell Polyolefins.

About Basell
Basell Polyolefins is the largest polypropylene producer and marketer and one of the major companies in the polyethylene field. The company is jointly owned by BASF and Shell. Basell customers cover a 120-country footprint; the company has plants in 26 countries spread over five continents. Basell has a 25% stake in the Ethylene and utilities project.


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