Tasnee/Basell JV Integrated Polyethylene Complex, Saudi Arabia

During the first quarter of 2005 National Petrochemical Industrialisation Company (Tasnee Petrochemical) and Basell announced that they had signed an agreement to build an integrated polyethylene (PE) complex in Al-Jubail Industrial City, Saudi Arabia.

The complex includes a gas cracker and two 400,000tpa PE plants. One PE plant will produce high density polyethylene (hdPE) and the other will produce low density polyethylene (ldPE). The complex is scheduled to become operational in 2008.

Basell is set to hold a 25% stake in the project with Tasnee Petrochemicals, and other Saudi investors including Sipchem and Sahara Petrochemical Company will take the remaining equity. The complex will require an investment of some $2.4bn.

ETHYLENE CRACKER AND UTILITIES CONTRACT

In July 2005 Tasnee Petrochemical, along with Basell and its partners, announced that the contract for the ethylene cracker and utilities had been awarded to Germany's Linde and South Korea's Samsung Engineering Company. The facility will produce 1m tpa of ethylene, and 300,000tpa of propylene. Construction work on the cracker began during the first quarter of 2006.

Linde will provide technology for the cracker as well as basic engineering and procurement of key equipment, including the furnace section. Samsung Engineering is responsible for providing detailed engineering and construction services. The contract is valued at €1bn.

CRACKER FEEDSTOCK

Feedstock for the gas cracker will be supplied by Saudi Aramco.

ETHYLENE PROCESS CONTROL CONTRACT

During September 2006, Honeywell announced that it has been awarded a contract to supply the process and safety controls for Tasnee Petrochemicals 1mtpa ethylene unit. The contract was valued at $7m. Honeywell's Experion Process Knowledge System will be used to manage the production of ethylene. Honeywell is scheduled to complete its project by December 2007.

CRACKER PROCESS TECHNOLOGY

Linde's ethylene process technologies are based on its Pyrocrack furnaces and subsequent Ultrarec olefins recovery process. The Pyrocrack furnaces are based on a technology which allows for the cracking of all feedstocks, including ethane, propane, butane, LPG and naphtha, through to hydrocracker residues.

Linde states that Pyrocrack furnaces guarantee 'excellent productivity' due to long run length and high yields. The Ultrarec-recovery unit consists of three parts which Linde says work together to provide the lowest energy and feedstock consumption figures for all feedstocks in single train ethylene plant.

POLYETHYLENE TECHNOLOGY

The hdPE plant will be based on Basell's Hostalen process, while the ldPE unit will be based on Basell's Lupotech T technology. Basell said that the units will be the largest Hostalen and Lupotech T plants in existence.

BACKGROUND

The Saudi Arabia General Investment Authority (Sagia) said that the project was inline with its vision to 'promote investments in the strategic petrochemical sector'. In addition, development of the petrochemical complex is expected to lead to the creation of 700 jobs for the Saudi workforce.

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