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JGC Awarded Major Petrochemical Project in Saudi Arabia

Source: www.gulfoilandgas.com 7/22/2004, Location: Middle East

JGC Corporation and its subsidiary JGC Arabia Ltd. have been awarded the engineering, procurement, and construction contract for an integrated styrene facility at Al Jubail, Saudi Arabia. The new plant will be owned and operated by Jubail Chevron Phillips Company(JCP), a joint venture between Chevron Phillips Chemical Company LLC's wholly owned subsidiary Arabian Chevron Phillips Petrochemical Company Limited(50%) and Saudi Industrial Investment Group(50%).

When completed, the styrene facility will include feed fractionation, an olefins cracker, ethylbenzene and styrene monomer process units, and associated utilities and infrastructure. Project completion is scheduled for late 2007. The construction site is in the Al Jubail Industrial Complex, Saudi Arabia.

Styrene is an aromatic monomer derived from benzene and ethylene. It is used to produce a wide variety of polymers with diverse end uses that include packaging, automotive applications, electronic parts, rubber articles, paper, housewares, tires, luggage, construction materials, carpeting, and toys. Worldwide demand for styrene is increasing, particularly in Asia. Arabian Chevron Phillips Petrochemical Company Limited and Saudi Industrial Development Group have elected to respond to this demand growth by participating in this project.

JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects with annual sales of approximately US$3 billion. JGC is currently executing large-scale projects worldwide, especially in the Middle East.

In Saudi Arabia, JGC started construction activities in the 1960s and has since worked on more than 15 projects, including the most recent for Saudi Aramco: the Haradh and Hawiyah gas plants that were successfully completed in 2001 and 2003, respectively.

This is the first contract awarded to JGC by Jubail Chevron Phillips Company. JGC was selected on the basis of it project execution capabilities and due to its record of successful completions of large-scale petrochemical projects in the Middle East, especially in Saudi Arabia.

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