Aramco Dow to release 3
EPC packages for Jubail project
MEED reported that Saudi Aramco petrochemicals joint
venture with the US’
Dow
Chemical at Jubail is about to release the first
three engineering, procurement and construction packages to pre
qualified contractors.
The report quoted a source as saying that “Three packages are being sent out
for the project at Jubail with the rest planned to be released
over the next few months. Aramco has been pretty quiet during
December, but it looks like it is really starting to push this
project forward. It is a massive job, though, so the sooner they
begin the whole process, the better.”
The first package
release is the contract to build the hydrogen, carbon
monoxide and ammonia plants at the complex. The plants will be
constructed on a build, own, operate and transfer basis. Four
companies have pre qualified to bid on package 1:
1. Paraxair Inc (US)
2. Linde Group (Germany)
3. Air Liquid Arabia (France)
4. Air Product & Chemical/Abdullah Hashim Industrial Gases
& Equipment Co (US/Saudi Arabia)
The second package involves the construction of the polymeric
methylene diphenyl diisocyanate (PMD) and toluene diisocyanate
(TDI) production
facilities. A total of seven bidders have been pre qualified for
the package including two consortiums.
1. Fluor (US)
2. Daelim Industrial (South Korea)
3. Technip (France)
4. JGC Corporation (Japan)
5. Aker Kvaerner (Norway) and Sinopec International (China)
6. SK Engineering & Construction (South Korea)
7. Hyundai Engineering & Construction (South Korea) and
Jacobs Engineering (US)
The third package involves the construction of the aniline-formalin
and DNT-nitric
facilities. Seven contractors have been pre qualified
1. Daelim
2. Toyo Engineering (Japan)
3. Technip (France)
4. JJC
5. Technicas Reunidas (Spain)
6. Saipem (Italy)
7. Samsung Engineering (South Korea)
The complex will be constructed at Jubail Industrial City 2 in
the Eastern Province of the kingdom. A lease has been signed and
the new location is about 1 kilometer away from the Saudi Aramco
Total Refining and Petrochemical Company project.
US Eximbank OKs $5 billion loan for Saudi
petrochemical site
The U.S. Export-Import Bank has approved a record-breaking $4.975 billion direct
loan to help build a petrochemical complex in Saudi Arabia, the bank said on
Thursday.
The loan to the Sadara Chemical Company, a joint
venture between Dow Chemical Co and Saudi Arabian Oil Co, is the biggest in the
bank's history and "will support more than 18,000 American jobs across 13
states," Ex-Im Bank President Fred Hochberg said in statement.
Approximately 70 companies including Dow, KBR, ABB Inc and more than 20 small
businesses are expected to export U.S. goods and services to the facility in
Jubail Industrial City II in eastern Saudi Arabia under the loan, the bank said.
"Ex-Im Bank's action will allow U.S. manufacturers ... to sell equipment and
services to the largest industrial complex ever built in a single phase," Andrew
Liveris, Dow chairman and chief executive officer, said in a statement.
The complex is expected to be operational in 2016 and will consist of 26
processing units producing more than 3 million metric tons of 10 major
categories of chemical products and specialty plastics per year, the bank said.
Government export credit agencies in Britain, Germany, France and South Korea
are also helping to finance construction of the complex.
The loan marks Ex-Im Bank's second petrochemical transaction in Saudi Arabia and
its second huge financing project in recent weeks in the Gulf region.
It announced a $2 billion direct loan on September 7 to Barakah One Co of the
United Arab Emirates to buy U.S. equipment and construction services to build
one of the world's largest nuclear power plants.
Earlier on Thursday, the U.S. Trade Representative's office announced it had
signed a framework agreement with Saudi Arabia and other members of the Gulf
Cooperation Council to explore ways to boost bilateral trade and investment.
ーーー
2012/9/27 Ex-Im Bank
Ex-Im Bank Approves Record-breaking
Transaction to Support More Than 18,000 Jobs
In its largest job-supporting authorization to date, the board of the
Export-Import Bank of the United States (Ex-Im Bank) has approved a $4.975
billion direct loan to Sadara Chemical Company for the export of American goods
and services required in the construction of a petrochemical complex in Jubail
Industrial City II in the Kingdom of Saudi Arabia.
According to estimates calculated from U.S. Census Bureau statistics, the
financing will support approximately 18,400 American jobs, 12.5 percent of which
come directly or indirectly from small businesses, in 13 states. Among the
approximately 70 American exporters involved in the transaction are KBR, ABB
Inc., and The Dow Chemical Company. More than 20 of the exporters are small
businesses.
"Today the board approved a record-breaking transaction that will support more
than 18,000 American jobs across 13 states," said Ex-Im Bank Chairman and
President Fred P. Hochberg. "No other transaction in Ex-Im Bank's storied
history has supported as many American jobs as this transaction, and no other
single transaction has provided so much support to small businesses.
Furthermore, the manufacturing jobs supported by this transaction will in turn
support other jobs, allowing the benefits of the transaction to reverberate
throughout key corners of the U.S. economy."
Located in the Eastern Province of Saudi Arabia, the mega-project will develop
significant downstream capabilities for production in the fast-growing markets
of the Middle East. Sadara will be the largest integrated petrochemical complex
ever constructed in a single phase and will comprise of 26 process units
producing more than 3 million metric tons of ten major product families of
chemical products and specialty plastics per year. The complex will become
operational in 2016, and its products will be available in markets throughout
the world.
Sadara Chemical Company, organized and existing under the laws of the Kingdom of
Saudi Arabia, is a joint venture developed by the Saudi Arabian Oil Company
(Saudi Aramco) and Dow.
Headquartered in Midland, Mich., The Dow Chemical Company, and its consolidated
subsidiaries (Dow), delivers a broad range of technology-based products and
solutions through the production, marketing, and sales of specialty chemicals
and advanced materials and plastics. Dow operates manufacturing sites in 36
countries and employs approximately 52,000 people.
"This historic investment is an enormous opportunity – to drive growth and
create thousands of jobs here in the U.S. The surest way to grow our economy is
to make high-value, innovative products in America, and to bring them to market
all over the world," said Andrew N. Liveris, chairman and chief executive
officer of The Dow Chemical Company. "Ex-Im Bank's action will allow U.S.
manufacturers to do just that – to sell equipment and services to the largest
industrial complex ever built in a single phase – namely, Sadara. Thanks to the
manufacturing sector's unmatched multiplier effect, this will create thousands
of additional jobs across the entire economy."
Saudi Aramco, wholly owned by the Saudi government and based in Dhahran, Saudi
Arabia, manages the largest proven reserves of conventional crude oil in the
world and the fourth largest gas reserves. The company was incorporated in the
early 1940s and employs approximately 55,000 people.
The loan marks Ex-Im Bank's second petrochemical transaction in Saudi Arabia.
Other export-credit agencies participating in the transaction include Export
Credits Guarantee Department of the United Kingdom, Hermes of Germany, Compagnie
Française d'Assurance pour le Commerce Extérieur of France, the Korea
Export-Import Bank, and the Korea Trade Insurance Corporation.
Aquatech International, a Canonsburg, Pa.-based small business engaged in the
transaction, will provide water-treatment equipment for the complex. The company
specializes in zero-liquid-discharge treatment, water reuse, and desalination.
"We at Aquatech are very pleased that the board of directors of Ex-Im Bank has
approved the financing for the Sadara project," said Venkee Sharma, president
and CEO of Aquatech. "This particular project has helped Aquatech to retain
50-plus jobs at its Canonsburg, Pa. facility, as well as numerous jobs within
our supply chain. Ex-Im Bank has had a positive impact on our continued growth
and job creation for the last two decades."
Saudi Arabia accounted for $2 billion of Ex-Im Bank's credit exposure as of the
end of FY 2011, and during the same year the Bank authorized $1.4 million in
financing for the export of American goods and services to the Kingdom.
In FY 2012 to date (the present transaction excluded), Ex-Im Bank has approved
approximately $3.9 billion worth of authorizations in the Middle East and North
Africa.
About Ex-Im Bank:
Ex-Im Bank is an independent federal agency that helps create and maintain U.S.
jobs by filling gaps in private export financing at no cost to American
taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers $1.9
billion above the cost of operations. The Bank provides a variety of financing
mechanisms, including working capital guarantees, export-credit insurance, and
financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an
all-time Ex-Im record. This total includes more than $6 billion directly
supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's
total authorizations are supporting an estimated $41 billion in U.S. export
sales and approximately 290,000 American jobs in communities across the country.
For more information, visit www.exim.gov.