Plants: Tecnimont clinches US$10 mn contracts in South Korea, Russia and India; Advanced/SK Gas to build US$1.8 bn PDH/PP complex in Saudi Arabia

In the midst of lockdowns all over the world due to Covid-19, Italy’s Maire Tecnimont S.p.A. says that its subsidiary Tecnimont S.p.A. has been granted awards for a total amount of approximately US$10 million for engineering services and feasibility studies in the petrochemical sector in South Korea, Russia and India. It was able to do this through its digital platform.

In particular, Tecnimont has signed a contract to develop the FEED (front end engineering design) and subsequent detailed engineering for the High Pressure section of a low-density polyethylene (LDPE) plant to be realised in South Korea for one of the major energy and chemical companies in Asia Pacific, which is developing a new grassroot petrochemical integrated complex.

Awards comprise also two feasibility studies, one for a new polypropylene unit in India by Austrian chemical firm Borealis and the other for an additional line of acrylonitrile in Russia by Lukoil OOO Saratovorgsinetz.

Pierroberto Folgiero, Maire Tecnimont Group CEO, commented: “These awards confirm that our group is continuing its activities thanks to the current effort of every single colleague, as well as the benefit derived from the early adoption of our Digital Advantage Smart Platform.”

The digital platform was launched in and has led to the full digitalisation of its processes that allows advanced collaboration among its professionals and partners, regardless their physical working location. Maire Tecnimont says this has allowed it to face the current situation with an adaptive approach. Currently, approximately 5,000 people worldwide from the engineering centres in Milan, Rome, Mumbai (India), Moscow (Russia), Sittard (The Netherlands), Braunschweig (Germany), Houston (US) are continuing to perform their work from home, coordinating within the connected multi-local project teams.

Listed on the Milan stock exchange, Maire Tecnimont Group operates in about 45 countries, numbering around 50 operative companies and a workforce of approximately 6,500 employees, along with approximately 3,000 professionals in the electro-instrumental division.

Meanwhile in other news, Advanced Global Investment Company (AGIC), a subsidiary of Saudi Arabian PP producer Advanced Petrochemical, is to form a joint venture with South Korea’s SK Gas Petrochemical Pte. (SKGP), a subsidiary of SK Gas, to build a propane dehydrogenation (PDH)/PP complex in Jubail, Saudi Arabia.

The jv agreement follows a Memorandum of Understanding (MoU) signed in June, 2019.

The new jv known as Advanced Polyolefins will invest US$1.8 billion and will be owned by AGIC with 85% share and SK Gas Petrochemical holding the remainder.

The facility will have a nameplate capacity to manufacture 843,000 tonnes/year of propylene and 800,000 tonnes/year of polypropylene.

AGIC has also inked a license agreement with US-based Lummus Technology for the supply of Catofin technology and with LyondellBasell for Spheripol and Spherizone PP technologies.

According to AGIC, about 25% of the finance for the project has been secured by equity from shareholders and remaining 75% will be financed through loans by the newly formed JV.

Saudi Aramco will supply propane for the project on a long-term basis, for which it has also appointed project management consultants.

Construction is expected to start in 2021 with commercial operations scheduled by the second half of 2024.

(PRA)

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