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Sabic invests $170 million in Geleen Naphtha Cracker

Jacobs Engineering won the EPCM Services Contract

SABIC has awarded a contract to Jacobs Engineering Group to provide engineering, procurement and construction management (EPCM) services to upgrade an Olefins 4 plant at its petrochemical production complex in Geleen, Netherlands.

Jacobs said it will carry out the work from its office in Meerssen, Netherlands, which is close to the site.

SABIC will spend  $170 million (135 million euros) capital expenditure in safety, energy saving and environmental improvements at their production site in Geleen.

The goal of the investment is to ensure a safer, more competitive and more energy efficient cracker, which is better for the environment.

The upgrade project will transform the Naphtha Olefins4 cracker into one of the best crackers in Europe in terms of safety, durability and cost efficiency.

$170 million Capital Expenditure to save 8% Energy Consumption and CO² Emissions

Together with the  upgrade project, the $170 million capital expenditure will be used to launch more than twenty additional improvement projects and a substantial maintenance shutdown (Turnaround) scheduled for September 2013.

Built in the 1970s, the cracker will be modernized according to the latest technologies so that it can continue to compete with ‘younger’ plants.

Upgrading the Olefins4 cracker fits in with SABIC’s growth ambitions to transform Geleen into a top petrochemical producer over the next few years.

The upgrade project will require a significant amount of extra work and will therefore create new temporary employment opportunities of a few hundred man years. 

The goal of the upgrade project is to reduce the cracker’s energy consumption by 8%.

This means significantly less CO2 emissions, which is better for the environment, the region and SABIC global carbon  footprint.

The project will also realize an Ethylene production increase of 2% over the actual 670,000 t/y capacity.

“Becoming a key European player not only requires us to enhance our production capacity and employment opportunities, it also requires us to grow in terms of safety and the environment. Sustainability is a major priority for our clients and for SABIC.” says Jacques Slabbers, Director Area Manufacturing Services Europe.

Sabic Competitive edge

The upgrade project and the improvement projects will be completed during the Turnaround in September 2013.

The Olefins4 cracker will then be considered one of the most prominent in Europe, further enhancing SABIC’s competitive advantage.

The Geleen capital expenditure fits in perfectly with SABIC’s growth strategy to enhance its Market Leadership in the petrochemical industry.

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