Engineering News

Fluor Corp. Wins $2.2 Billion Contract for Saudi Kayan Petrochemical Complex
Wednesday November 29, 7:30 am ET

IRVING, Texas--(BUSINESS WIRE)--Fluor Corp. has been selected to provide engineering, procurement services and construction management for the utilities and offsite (U&O) facilities for Saudi Kayan's petrochemical complex in Al-Jubail, Kingdom of Saudi Arabia. The $2.2 billion project was booked in third quarter 2006.

Fluor was selected in June 2005 to provide front-end engineering and design and project management consultancy services for the complex. The project is a joint venture between Saudi Basic Industries Corp. and Al-Kayan.

Engineering on the U&O facilities began in July 2006 and will continue through 2008. Construction is slated to begin in February 2007 with a targeted completion of December 2009. Peak engineering employment is anticipated at 1,000 employees with peak construction employment of 12,000. Fluor offices in Camberley, U.K.; Houston, Texas; Manila, Philippines; and Saudi Arabia will be involved in the project.

"Fluor has a strong history of developing mega petrochemical complexes in the Middle East," said Jeff Faulk, Fluor's group president for energy and chemicals. "This project will utilize 17 licensed technologies and will produce both specialty amine derivatives and polycarbonates for the first time in Saudi Arabia. As the heart of the complex, the execution of the U&O facilities will be instrumental to the overall success of the project."

"Fluor has shown its capabilities on this project by performing the front end engineering and design, and now we will move forward with the Fluor team for engineering, procurement services and construction management of the facilities," said Abdullah Al-Rabeeah, Saudi Kayan president. "This petrochemical complex is vital to Saudi Arabia, and Fluor brings the best experience available to the program."

Once completed, the Saudi Kayan Petrochemical Complex will include a 2 million-tons-per-year ethane/butane cracker, including benzene extraction facilities; a 700,000-tons-per-year polyethylene plant; a polypropylene plant with capacity of at least 350,000 tons per year; and a 530,000-tons-per-year ethylene glycol unit. An integrated phenolics plant, including cumene, phenol and Bisphenol-A units, will produce feedstock for a 260,000-tons-per-year, high-value polycarbonates plant. Additional amine derivative facilities will be installed for the production of methylamines, ethanolamines, ethoxylates and choline chloride. Agreements with Saudi Aramco for the supply of both ethane and butane feedstock are complete, along with permitting from the Royal Commission for the commercial use of land and water.

Source: Fluor Corporation

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