Ras Tanura Integrated Complex Tendering Moves On; Dow Chemical Is Negotiating The JV.

Saudi Aramco and Dow Chemical Co. of the US are in an advanced stage in negotiations towards a partnership for the integrated Ras Tanura refining and petrochemicals venture. Prequalification applications were received on Oct. 25 from a number of international contractors, including Foster Wheeler, Fluor Corp., Jabobs Engineering and Bechtel of the US and WorleyParsons of Australia. A request for proposals (RFPs) will be issued on Dec. 6, with bids to be submitted by Jan. 27. Award of the EPC contract is expected in mid-March.

The tendering for the project, to upgrade the giant Ras Tanura oil refinery and have petrochemicals complex built next to the plant, began with expressions of interest (EoIs) submitted on Oct. 11 for the joint FEED, PMS and construction management services (CMS) contract. Estimated to cost of $16 bn, this is the largest industrial complex ever built in the region.

The main elements of the project are: (1) a 1.2m t/y ethane/naphtha steam cracker, fed with 70 MCF/day of ethane supplied from the Ju'aymah gas plant and 40,000 b/d of naphtha from the 550,000 b/d Ras Tanura refinery; (2) a fluid catalytic converter (FCC), consisting of an 80,000 b/d vacuum gas oil hydrotreater, a 70,000 b/d high olefins FCC and associated sulphur and amine plants; (3) an aromatics complex fed with 70,000 b/d of reformate and pyrolysis gasoline (pygas) to produce benzene, toluene and paraxylene to feed downstream derivative units; (4) a chlor alkali facility producing about 640,000 t/y of chlorine to feed downstream process units; (5) downstream process units comprising 28 different world-scale units, including a speciality mix of purefied terephthalic acid (PTA), polyethylene teraphthalate (PET) resins, toluene di-isocyanate (TDI) or methyl diphenyl di-isocyanate (MDI), styrene butadiene rubber (SBR) or acrylonitrile butadiene styrene (ABS) resins and acrylonitrile (ACN).

In addition, the project will require substantial offsites and utilities work, feedstock pipelines, an ethane pipeline from the Ju'aymah system, a new import/export jetty and a materials handling facility. Start-up of the integrated venture is scheduled for 2010.