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$500 million Al Jubail n-Butanol EPC contract at bidding stage

Saudi Kayan, Sabic, Saudi Aramco, Dow, Sahara and Tasnee aligned to tender EPC Contract

In January 2011, Saudi Kayan Petrochemical had signed a deal for equal partnership to build  a new n-butanol (NBA) plant at Al Jubail Industrial City.

The deal was signed between Saudi Kayan, Saudi Acrylic Acid Co (SAAC) and Sadara, the Saudi Aramco-Dow Chemical joint venture (JV).

Each party would have a 33.3% stake in the plant, which would be built within SAAC’s complex.

This new  plant in Al Jubail Industrial City would have a capacity of 330,000 t/y of n-Butanol.

NBA is a replacement product for choline chloride and dimethyl formamide.

From the project feasibility study, the estimated capital expenditure is getting close to $500 million

The plant will be operated by Saudi Acrylic Acid Co. 

NBA production at the plant was expected for completion and start in the second half of 2014.

Short list of contractors to bid on lump sum EPC contract

Because of the unusually large number of partners involved in the project, the process to qualify engineering companies and organize the tendering process took much longer time than expected.

The engineering, procurement and construction (EPC) contract will be awarded on a Lump Sum Turn Key (LSTK) basis which may have contributed to reduce the number of potential bidders.

Anyway the EPC bidding phase will be global between:

 – Daelim Industrial from South Korea

 – Maire – Tecnimont from Italy

 – Linde from Germany

 – Samsung Engineering from South Korea

Decision should be made by the end of the year.

Saudi Kayan in brief

The foundation stone of Saudi Kayan Petrochemical Company’s (Saudi Kayan) projects was created in June, 2007.

Saudi Kayan is an affiliate of SABIC with interests shared between:

 – SABIC 35%

 – Al-Kayan Petrochemical Company 20%

 – Public shareholders 45%

The Saudi Kayan petrochemical complex is one of the largest in the world and is located in the Jubail Industrial City

Saudi Kayan moved into commercial phase on 1 October 2011 and has commenced production of some specialized chemicals produced for the first time in Saudi Arabia.

These products include Ethanolamines (MEA, DEA & TEA), Ethoxylates, Phenol, Cumene and Polycarbonate which will provide wide web of opportunities for the downstream industries within the Kingdom.

Besides the products mentioned above, Saudi Kayan is also producing Ethylene, Propylene , Polyethylene ,Polypropylene, Ethylene Glycol, Natural Detergent Alcohol, Bisphenol-A, Acetone and other products.

Tasnee in brief

The National Industrialization Company (TASNEE) was established in 1985, as the first joint-stock industrial company fully owned by the private sector.

The company pursued the path of industrialization as one of the best options for diversification of the economic base and boosting of the overall growth in Saudi Arabia.

To build its Market Leadership, Tasnee’s strength is its wide experience and skilled-labor, state–of-the art technologies and products and innovative solutions.

Tasnee has grown up to become the second largest industrial Saudi Company and the second largest producer of titanium dioxide in the world.

TASNEE erects, manages, operates and owns petrochemical , chemical , plastic, engineering, and metal projects and provides industrial services and markets its products through five major sectors:

Petrochemical including

Saudi Ethylene and Polyethylene Company (SEPC)

 – Saudi Polyolefins Company (SPC)

 – Saudi Mono-acrylic Company

 – National Petrochemicals Marketing Company

Chemical including

 – National Titanium Dioxide Company (CRISTAL Global)

Metal including

 – National Metal Manufacturing & Casting Co. (MAADANIYAH)

 – National Lead Smelting Co. (RASASS).

Other activities including

 – Rowad National Plastic Company (ROWAD)

 – National Batteries Company (BATTARIAT)

 – National Packing Products Company (WATANPAC)

Services including

 – National Petrochemicals Marketing Company

 – National Technical Inspection and Testing Co (FAHSS)

 – National Operation and Industrial Services Co. (KHADAMAT)

 – National Environmental Preservation Co. (BEE’AH)

 – National Industrialization Petrochemicals Marketing Company.

Saudi Acrylic Acid Company (SAAC) in brief

SAAC was established in April 2009 as a limited liability joint venture company with interests shared between:

 – Sahara Petrochemicals 22%

 – Tasnee Sahara Operating Company (TSOC) 65%

 – Tasnee 13%

Through Sahara’s 32.55% equity stake in TSOC, Sahara owns an additional indirect 21.16% in SAAC giving an aggregate 43.16% shareholding.

SAAC owns 75% equity stake in SAMCO, 75% equity stake in SAPCO and a 33% equity stake in n-Butanol.

SAAC will also own and operate the U&O Facilities for the Integrated Acrylates Complex project to be completed by the first quarter of 2013.

SAAC main activities are to produce:

 –  Acrylic Esters (Acrylates): An esterification of Acrylic Acid and alcohols produces Acrylic Esters manly used in paints, coating, textiles, plastic additives, adhesives, etc.

 – Superabsorbent Polymers: Polymerization of Acrylic Acid produces super-absorbent polymers mainly used in the production of baby diapers and feminine hygiene products.


With no less than Saudi Kayan, Sabic, Saudi Aramco, Dow, Tasnee and Sahara being involved, the Al Jubail n-Butanol project will request major co-ordination efforts from the nominated EPC when awarded likely before the end of the year.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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