Finland's Neste Jacobs wins FEED contract for the Abu Dhabi Madeenat Chemaweyaat Industrial City

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Finnish company Neste Jacobs Oy (Porvoo) has signed a long-term agreement with the Abu Dhabi National Chemicals Company (Chemaweyaat) (Abu Dhabi, United Arab Emirates) to provide front end engineering and design (FEED) expertise and experience in polyolefins and aromatics for the development of the Chemaweyaat Industrial City.

Chemaweyaat was established in 2008 as a holding company specifically for the development of the Chemaweyaat Industrial City and is owned by the government bodies the Abu Dhabi Investment Council (Abu Dhabi) (40%), the International Petroleum Investment Council (Abu Dhabi) (40%) and the Abu Dhabi National Oil Company (Abu Dhabi) (20%).

The Chemaweyaat Industrial City is located in the Khalifa Port Industrial Zone in Taweelah between Abu Dhabi and Dubai. The KPIZ includes the construction of a container port, an industrial port and more than 100 square kilometers of specialized industrial, commercial, educational and residential economic and free trade zones. The first part of the complex is scheduled to begin production in 2014. Some estimates have placed the total investment value of the project to be as high as $10 billion. The new port is scheduled to be operational by the end of 2010 and forms a strategic part of the long-term plan to develop Abu Dhabi's industrial and economic diversification, known as "Abu Dhabi 2030."

The Chemaweyaat Industrial City will include the world's largest complex of petrochemical plants. Among the production facilities to be installed are a cracker unit, propylene and ethylene derivative units, and various benzene, toluene and xylene, glycol, phenol and derivatives units. When fully completed, the Industrial City is expected to be comparable in size to the Jubail Industrial City in Saudi Arabia and will host several mega-chemical complexes using Abu Dhabi's gas and liquid feedstock. The total production capacity is expected to be 10 million tons per year from the integrated complex.

Neste Jacobs was formed in 2004 by Neste Oil Corporation (HEL:NES1V) (Espoo, Finland) and Jacobs Engineering Group Incorporated (NYSE:JEC) (Pasadena, California) with Neste having a majority 60% share, while Jacobs holds the remaining 40%. Neste Jacobs has more than 40 years experience in the oil, petrochemical and chemical processing industries in Europe, North America and the Middle East and specializes in engineering, procurement and construction management services. In addition, the company also offers technology licenses such as Neste Oil's Clean Fuel and Advanced Automation technologies.

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