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Sabic and Mitsubishi evaluate bids on Saudi Jubail Methyl Methacrylate

Tecnicas Reunidas completed FEED for Jubail MMA

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Spanish engineering company Tecnicas Reunidas completed the front end engineering and design (FEED) of the world largest methyl methacrylate (MMA) production unit planned by Saudi Basic Industries Corporation (Sabic) and Mitsubishi Rayon Company (MRC) at the Al-Jubail Industrial City in the Eastern Province of Saudi Arabia.

This project is part of Sabic strategy to grow on the higher added value petrochemical products and it comes in a context where Saudi Arabia is itself willing to develop the manufacturing industries in the Kingdom.

MMA is well known to produce paints, adhesives and transparent resins for all kinds of applications.

Sabic_Mitsubishi_Rayon_Al-Jubail_MMA-PMMA_Project_MapAs monomer, MMA is the building block to produce the polymer PMMA.

In its turn, PMMA is commonly called acrylic used for automotive plastics parts, fibers, construction chemicals or even acrylic gasses.

Because of MMA and PMMA multiple applications, Saudi Arabia has reached the economical size to become self-sufficient in building a world-scale facility.

In 2009, Sabic and MRC had signed a letter of intend (LOI) to co-operate in this MMA – PMMA project in Saudi Arabia.

In 2011, they established an equally-owned joint venture to support the project and they selected Sabic existing facilities in the Al-Jubail Industrial City to locate these MMA and PMMA production units.

They also agreed to use the proprietary Alpha technology owned by Mitsubishi Rayon.

In 2012, Sabic and Mitsubishi selected the Spanish engineering company Tecnicas Reunidas to carry out the FEED work for these MMA and PMMA facilities.

Four bidders for Sabic – MRC Jubail MMA EPC contract

According to this FEED, the Al-Jubail MMA and PMMA project should have the production capacities of:

 – 250,000 tonnes per year (t/y) of MMA

 – 40,000 t/y of PMMA

During this FEED work, Sabic, MRC and Tecnicas Reunidas had to overcome some challenges related to the implementation of the Alpha technology licence and to costs cutting.

Sabic_Mitsubishi_Rayon_Al-Jubail_MMA-PMMA_Project_Because of the multiple processes to produce MMA and PMMA, Sabic and Mitsubishi took some time to align on the best use of the Alpha technology.

Then the first costs estimates were pushing this Al-Jubail MMA and PMMA project close to $1 billion capital expenditure.

These issues had to be clarified during this FEED phase to qualify the potential bidders for the engineering, procurement and construction (EPC) contract.

Therefore the call for tender of the Al-Jubail MMA and PMMA EPC contract could only be released on mid 2013.

After the technical clarifications, four engineering companies were left in competition.

In this tendering process, the final bidders were expected to submit their commercial offer end of April 2014.

With the costs estimates revised down to $500 million capital expenditure, Sabic and Mitsubishi Rayon should reach the final investment decision (FID) on mid of 2014 in targeting the first commercial operations by 2017.

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1 Comment to “Sabic and Mitsubishi evaluate bids on Saudi Jubail Methyl Methacrylate”

  1. Dear Sir,

    can you please provide me bidders name??

    Kind Regards,,,

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