National Chevron Phillips, 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 being built in Al-Jubail, Saudi Arabia, requires an investment of $5bn. The complex will be owned by CPChem, 35% with the remaining stake being held by Petrochem, a company established by SIIG.

Construction work began at the start of 2008, with commercial production scheduled to begin in September 2011.

PRODUCT SLATE

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.

The complex is scheduled to become operational by September 2011.

FRONT END ENGINEERING AND DESIGN (FEED) CONTRACT

Worley Parsons was awarded a multi-million dollar contract to carry out the Front End Engineering and Design on the NCP project.

ENGINEERING, PROCUREMENT AND CONSTRUCTION CONTRACT

At the end of 2007 CPChem announced that Daelim Industrial Co, 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's responsibilities cover the EPC services for the 1.2mtpa cracker, a 200,000tpa metathesis facility and the 100,000tpa 1-hexene facility.

Daelim will provide EPC services for two 550,000tpa polyethylene lines, the 400,000tpa polypropylene line and the two 100,000tpa polystyrene trains. Daelim's contract is valued at $960m

PROCESS TECHNOLOGY

During June 2006 ABB Lummus Global announced that is 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 Lumus 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, providing lower energy consumption 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

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, which is scheduled to be completed by late 2009, is put at $140m.

COMPRESSION TRAINS

GE Oil & Gas is providing three compression trains for the NCP's 1.2mtpa cracker. The compression trains will consist of cracked gas, propylene refrigerant and binary refrigerant compressors.

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. This was set up to develop an integrated styrenics facility, which is scheduled for completion in 2008.