We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 15 Dec 2010 02:36 PM

Font Size

- Aa +

South Korea's GS wins Sipchem new plant award

Plant expected to be operational in Q2, 2013; project to cost around $800m

South Korea's GS wins Sipchem new plant award
SIPCHEM PLANT: The plant is expected to be operational in the second quarter of 2013

Saudi International Petrochemical Co (Sipchem) said on Wednesday its affiliate awarded South Korea's GS Engineering and Construction a contract to build a petrochemicals plant as part Sipchem's third expansion phase.

Sipchem's affiliate International Polymers Company (IPC) is 75-percent owned by Sipchem while South Korea's Hanwha Chemical owns the rest.

GS will build the 200,000 tonnes per year (tpy) plant which would produce both ethylene vinyl acetate (EVA) and low density polyethylene in Jubail, on Saudi Arabia's Gulf coast.

The plant is expected to be operational in the second quarter of 2013, Sipchem said in a bourse statement.

Sipchem did not give a value for the engineering, procurement and construction (EPC) contract but said the project would cost around SR3bn ($800m).

Previously, Sipchem had said on its website that the third expansion phase would result in a production of 300,000 tpy of EVA and other products and would cost 4 billion riyals.

The company has secured ethane which will be cracked into ethylene by an affiliate of Saudi Basic Industries Corp (SABIC).  Another Sipchem affiliate would also provide vinyl acetate monomer as feedstock, Sipchem said.

Sipchem has a technology licensing agreement with ExxonMobil for the project.

Top oil exporter Saudi Arabia is investing in a massive expansion plan in petrochemicals and chemicals as it looks to profit more from processing energy resources and become less dependent on crude revenues alone. ($1=SR3.750)

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.