Saudi Arabia's Eastern Petrochemical Moving Forward with Third Expansion at Jubail Industrial City

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Researched by Industrial Info Resources (Sugar Land, Texas)--Saudi Arabia's Eastern Petrochemical Company (Jubail) is moving forward with the construction of an ethylene, ethylene glycol and polyethylene plant worth $2.28 billion in the Jubail Industrial City. This is a major expansion of the company's existing complex. The project will add 1.3 million tons per year of ethylene, 700,000 tons per year of ethylene glycol, 400,000 tons per year of linear low-density polyethylene and 400,000 tons per year of high-density polyethylene.

Construction is almost completed, and commissioning is expected in the first quarter of 2009. In July 2005, Stone & Webster (Milton Keynes, United Kingdom) was awarded an engineering, procurement and construction (EPC) contract to provide services for the ethylene production plant, with a total value of about $900 million. Samsung Engineering Company Limited (SEO:028050) (Seoul, South Korea) was awarded an EPC contract for the ethylene glycol plant and Linde AG (FRA:LIN) (Munich, Germany) was awarded the EPC contract for the linear low-density and linear high-density polyethylene plants.

Eastern Petrochemical began operation of the Jubail Petrochemical Complex in 1985. The company is a joint venture equally owned by Saudi Basic Industries Corporation (SAU:2010) (Riyadh, Saudi Arabia) and SPDC Limited (Chiyoda, Tokyo), a consortium led by Japan's government and the Mitsubishi Group (Tokyo).

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