MIDDLE EAST INDUSTRIAL BRIEFS

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Researched by Industrial Info Resources.

PETROCHEMICALS

Iran Privatizing Petrochem Companies Following the privatization of 12 petrochemical companies in Iran’s calendar year up to March 20, 2007, nine more companies will be offered on the Iran Stock Exchange (TSE) by year’s end. The companies privatized so far account for 35% of the sector’s subsidiaries. The process is motivated by Article 44 of the country’s constitution and is part of a plan to privatize more than 60 companies in terms of a list sent by the National Petroleum Company to the Ministry of Petroleum. The nine companies going up for bid are Khorassan, Shiraz, Tabriz, Bistoun, Fanavaran, Shahid Tondguyan, Amir-Kabior, Razi and Ghadir.

Octal Building 300,000-Ton APET Plant in Oman Octal Holdings is building a $300 million PET resin and amorphous PET sheet plant next to the Port of Salalah in Oman. When in full operation the plant will have a production capacity of 300,000 tons per annum (TPA), which Octal claims will represent 20% of the APET sector’s global total of the product. The investment will be the first phase of a plan to double capacity in 20 months from mid-2008 when the company will have annual global sales of $500 million. It currently produces 30,000 TPA of PET at the site. The technology the company is using allows it to maintain sheet thickness with less than 1% variation, allowing thermoformers to order thinner gauges sheet, save and obtain higher yield. Octal is backed by U.S. private equity firms Chemlink Capital and Pound Capital, and 30% is held by Middle East investors.

Saudi Arabian Phosphate Project Faces Delays, Cost Escalation Construction-resource bottlenecks are causing project delays and cost escalation worldwide. Saudi Arabian Mining Company (Maaden) has reported that a phosphate venture under development will cost $5.6 billion. This represents an increase of 62% on initial cost estimates. Sabic, with 30% of the project, says the plant will hold 20% of global trade in phosphate-based fertilizers with a total of 8 million TPA when it is in production. The project covers mining for phosphates and the construction of a processing plant with a capacity of 3 million TPA of di-ammonium phosphate fertilizer.

Naphtha Released by Ethylene Plant Delay Saudi Chevron Phillips will likely delay the start-up of the $3 billion petrochemical plant in Jubail, Saudi Arabia, from the fourth quarter of 2007 to the first quarter of 2008. Reports say that this has allowed Saudi Aramco to make an offer of the naphtha, which had been reserved for the plant, to the market from October 2007 to March 2008, when operational the plant will produce 220,000 TPA of ethylene.

Saudi Industrial and ChevronPhillips Move on $4.8 Billion Plant The Saudi Industrial Investment Group (SIIG) will double its investment in a 65/35 joint venture with Chevron Phillips for a $4.8 billion adipic acid and nylon plant, which is scheduled to start production in 2011. The new company’s initial public offering(IPO) will take place in the second half of 2008 when 50% of SIIG’s stake in petrochem will be offered for public subscription without premium. This will be the third project between SIIG and Chevron Phillips. In 2000, they started up their first petrochem plant in Jubail. The ethylene plant is their second to be followed by the 2011 start-up project.

TRANSMISSION

Areva Wins $91 Million Substation Contract Mitsubishi Heavy Industries (MHI) has awarded a $91 million contract to France’s Areva for a turnkey high-voltage substation contract in Saudi Arabia. MHI is the engineering, procurement and construction contractor for the Shuqaiq Water Electricity Company’s power and desalination project. Areva will also supply associated control and protection systems, as well as engineering, erection and commissioning works for substation delivery in April 2009.

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