FLUOR DANIEL takes PMC for PIC’s Olefins II Project
Fluor Daniel of the United States received in late July 2004 a letter of intent for the contract to provide Project Management Consultancy (PMC) services for the Olefins II Project. The scheme, which is being promoted by a Joint Venture of Petrochemical Industries Company (PIC) and the Dow Chemical Company of the US, involves the construction of an 850,000-tonn-a-year (t/y) Ethane Cracker, a 600,000 t/y Ethylene Glycol / Ethylene Oxide unit and 400,000 t/y of new Polyethylene capacity. The two other bidders for the PMC contract were Bechtel and Foster Wheeler.
In addition to Olefins II, Fluor will handle the PMC work for the proposed 300,000 t/y Ethyl Benzene / Styrene unit to be built by PIC and Dow. The unit will receive its Ethylene Feedstock from Olefins II and the Styrene and Benzene Feedstock from the Aromatics Complex planned by PIC. The estimated $ 1,500 Million Olefins II Project will double the capacity of the existing Olefins Complex operating at Shuaiba by Equate Petrochemical Company.
Fluor is the second major appointment on the Olefins II/Styrene Project. In late July Societe Generale was appointed Financial Advisor. Commissioning of the Olefins II Complex is scheduled for 2007.
KOC considers bids for upgrade of Gathering Centers
Kuwait Oil Company (KOC) is evaluating bids for the contracts to expand Gathering Centers (GCs) 27 and 28. SNC Lavalin (Canada) is the lowest bidder at $ 83 million for the Engineering, Procurement and Construction (EPC) contract to expand GC-27, while Tecnicas Reunidas (Spain) is the lowest bidder with $97 million for GC-28.
Two other contractors – SK Engineering (Korea) and Petrofac International (Sharjah) have put in their bids for the GC-27 contract. The contract calls for expanding the capacity of the GC located in the Umm Gudair Oil Field to 220,000 barrels a day (b/d) from 190,000 b/d. Other Korean Contractors namely Hyundai Engineering, LG Engineering and Daelim Engineering declined to bid. For the GC-28 contract, the other bidders are Petrofac, Sk and SNC. The scheme is aimed at handling an additional 40,000 b/d of crude at GC-28, which is located in the 200,000 b/d Minagash field.
Parsons have completed the front-end engineering and design (FEED) work for both projects. US-based Fluor Daniel is acting as the Project Management Consultant.
PIC pre-qualifies six International companies for Aromatics Project
Petrochemical Industries Company has pre-qualified the following six bidders for the contract to build the estimated $800 million Aromatics Plant:
1. JGC Corporation, Japan
2. Chiyoda Corporation, Japan
3. Technip, France
4. LG Engineering & Construction, Korea
5. Snamprogetti, Italy
6. SK Engineering & Construction, Korea
Prospective bidders expect Invitation To Bid (ITB) documents for the Engineering, Procurement and Construction (EPC) contract to be issued in late August.The scheme calls for the construction of a 650,000-tonne-a-year (t/y) Paraxylene and Benzene Plant and a 300,000 t/y Styrene unit. Kuwait National Petroleum Company (KNPC) will supply the Plant with 2.5 million t/y of Naphtha feedstock.
Bechtel of US is the Project Management Consultant (PMC). The facility will be 80% owned by PIC and 20 per cent by local investors.
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