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Sipchem Awards Construction Contracts for the Acetyl Complex

Source: www.gulfoilandgas.com 4/4/2006, Location: Middle East

Saudi International Petrochemicals Company (Sipchem) has awarded to Fluor Canada a contract for the construction of an Acetic Acid plant with an annual production capacity of 460 thousand tons, a Vinyl Acetate plant with an annual production capacity of 300 thousand tons, and the common utilities for the complex. Sipchem also selected the joint venture between Lurgi AG, a German Company and the French Company Air Liquide, for the construction of a Carbon Monoxide (CO) plant with an annual production capacity of 345 thousand tons, on a lump sum turn key basis. Carbon monoxide is the primary feedstock for the production of Acetic Acid.

The Acetyls Complex which would cost approx. SR 4 billion will be built at the existing Sipchem petrochemical complex in Jubail Industrial City. Licensing agreements for the Acetic Acid and Vinyl Acetate Monomer plants have been signed with U.S. based Eastman and Dupont companies. Initial construction work is underway and commercial operation is expected to start early 2009.

The Acetic Acid and the Vinyl Acetate Monomer projects are owned jointly by the Saudi International Petrochemicals Company and HELM ARABIA GMBH & CO KG.

The CO project is owned jointly by the Saudi International Petrochemicals Company and the National Energy Company (Saudi Company).

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