Sabic expands Kayan complex into strategic chemicals
Saudi Kayan (Kayan) is an affiliate of Saudi Basic Industries Corporation (SABIC) to run and operate one of the largest petrochemical complex in the world located in the Jubail Industrial City.
Sabic designed it to reduce Saudi economy reliance on crude oil in bringing up to the market high added value petrochemical products.
Thus Saudi Kayan 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 spectrum of opportunities for the downstream industries within the Kingdom of Saudi Arabia.
To supply the needed feedstock for the petrochemical specialties mentioned above, Saudi Kayan is also producing Ethylene, Propylene , Polyethylene ,Polypropylene, Ethylene Glycol, Natural Detergent Alcohol, Bisphenol-A, Acetone and other products.
Kayan awards FEED to Jacobs for new UHMWPE plant
UHMWPE stands for ultra-high-molecular-weight polyethylene.
This UHMWPE plant will be established on the company’s site in Jubail and will benefit from the competitive local feedstock of ethylene from the Saudi Kayan’s olefins units in Jubail Industrial City.
Saudi Kayan is planning the UHMWPE plant for a production capacity of 35,000 t/y.
SABIC will provide its own technology for the UHMWPE production process at the plant.
Earlier this year Sabic completed the feasibility study.
Last June, Saudi Kayan has awarded U.S. company Jacobs Engineering Group Inc. (Jacobs) a contract for this greenfield plant in Jubail Industrial City.
Under the agreement, Jacobs will develop the:
– Process Design Package (PDP)
– Front end engineering and design (FEED) package
Saudi Kayan and Sabic have not yet defined the expected date of completion, as it will come from the FEED conclusions.
Jacobs takes advantage of its GES+ contract
In order to increase the local content in Saudi Arabia for high added value activities such as engineering and design or project management services, Saudi Arabia, through its flagship Saudi Aramco, is now requiring from the foreign engineering companies to meet the requirements of the General Engineering Services Plus (GES+) contract for the pre-qualification on greenfield or brownfield projects.
Through these GES+ contracts, Saudi Arabia intends to motivate the foreign engineering companies to create joint venture with Saudi contractors and put in place a long term partnership for training and upgrading the local expertise in oil & gas and petrochemical engineering and design.
In March 2008, Jacobs Engineering (Jacobs) acquired a 60 percent stake in the Saudi Arabian firm of Zamel & Turbag Consulting Engineers (ZATE), now known as Jacobs ZATE.
The combination of ZATE with Jacobs‘ existing operations in the The Kingdom of Saudi Arabia results in a staff of more than 500 in the Middle East.
In May 2012, Jacobs ZATE has been awarded a General Engineering Services Plus (GES+) contract by the Rabigh Refining and Petrochemical Company (Petro Rabigh) for its $15 billion facility.
This GES+ contract signed with Saudi Aramco gives the credit to Jacobs‘s commitment to contribute to the Saudi locals’ competence enhancement and to provide world-class services to the local Oil & Gas and petrochemical industry.
In being awarded this high profile project, Jacobs Engineering receives the Saudi Kayan and Sabic confidence in its long term strategy in Saudi Arabia and ability to deliver high added value petrochemical projects of this nature such as this new greenfield UHMWPE plant.