National Chevron Phillips, Al-Jubail, Saudi Arabia
During the second half of 2007 the Saudi Industrial Investment Group (SIIG), along with Chevron Phillips Chemical Company (CPChem), announced that they were to form a joint venture to develop a world-scale petrochemical complex in Saudi Arabia.
The complex, which is located in Al-Jubail, Saudi Arabia, required an investment of $5bn. It is owned by CPChem (35%), with the remaining stake being held by Petrochem (65%), a company established by SIIG.
Construction work began in early 2008 and was completed in December 2011. Commercial production from the plant started in October 2012. The project created about 950 jobs.
National Chevron Phillips project products
The petrochemical complex includes a 'world-class' olefins cracker, producing 1.2mtpa of ethylene along with propylene.
Downstream products include two 550,000tpa polyethylene lines, 400,000tpa of polypropylene, two 100,000tpa polystyrene lines and 100,000tpa of 1-hexene.
Other facilities include utilities, storage, feedstock and product pipelines and port facilities.
Front end engineering and design (FEED) contract
Worley Parsons was awarded a multimillion dollar contract to carry out the front end engineering and design (FEED) on the NCP project.
Engineering, procurement and construction contract
At the end of 2007, CPChem announced that Daelim Industrial, of South Korea and Japan's JGC Corporation, had been awarded contracts to provide the engineering, procurement and construction (EPC) on the NCP project.
JGC carried out the EPC services for the 1.2mtpa cracker, a 200,000tpa metathesis facility and the 100,000tpa 1-hexene facility. Daelim provided EPC services for two 550,000tpa polyethylene lines, the 400,000tpa polypropylene line and the two 100,000tpa polystyrene trains. Daelim's contract value was $960m.
In May 2009, JGC awarded a $109m sub-contract to Mohammad Al Mojil Group (MMG) for building part of an ethylene plant for the project.
MMG was awarded another sub-contract in 2008 by Daelim for carrying out utility works for the project. The scope of work under the contract included construction of buildings, facilities, air conditioning systems and auxiliary services.
Process technology at the petrochemical complex
During June 2006 ABB Lummus Global announced that it had been awarded a contract to provide its pyrolysis and ethylene recovery technology, along with its olefins conversion technology (OCT), to produce ethylene and propylene based on ethane and propane feedstock.
ABB Lummus Global said that OCT allows for the efficient conversion of butylenes from the cracker and reacts with ethylene to produce polymer grade propylene at high selectivity and low capital investment, dramatically improving the economics of the plant, needing less energy and reducing greenhouse gas emissions.
ABB Lummus Global is now known as Lummus Technology following the completion of the acquisition of Lummus Global by US-based CB&I in November 2007.
Heater contracts and compression trains
During the first quarter of 2008, Lummus Technology was awarded a contract to provide nine cracking heaters for NCP's 1.2mtpa ethylene plant. The value of the contract was put at $140m.
GE Oil & Gas provided three compression trains for NCP's 1.2mtpa cracker. The compression trains consist of cracked gas, propylene refrigerant and binary refrigerant compressors.
National Chevron Phillips project background
Chevron Phillips Chemical has had a presence in the Middle East for a number of years. It has a number of joint venture companies.
These include Saudi Chevron Phillips Company, a joint venture which owns and operates an aromatics complex in Al-Jubail, Saudi Arabia. Jubail Chevron Phillips Company, also a joint venture, was established during 2003.
During the last quarter of 2000, Sabic announced that it had established a new subsidiary, Jubail United Petrochemical Company (JUPC), which would build a petrochemical complex. Construction of the complex began in 2001.
In August 2005 Saudi Arabia's Saudi Aramco and Japan's Sumitomo Chemical agreed to form a 50:50 joint venture to develop a petrochemical complex in Rabigh, Saudi Arabia.