Shaw Finalises Contract with SHARQ for Grassroots Ethylene Plant

The Shaw Group's Stone & Webster unit has finalised the contract for the previously announced letter of intent with Eastern Petrochemical Co., also known as SHARQ, for engineering, procurement, construction, and commissioning of a 1.3 million metric tons-per-year ethylene plant utilising Shaw Stone & Webster ethylene technology. Under the contract, valued at approximately $900 million, Shaw will provide engineering, procurement and construction services for the facility, which will be located in Al-Jubail, Saudi Arabia. The ethylene plant is expected to be completed in the first quarter of 2008.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "This award demonstrates our strengthening position in the Middle East petrochemical marketplace. We are very pleased to have finalised this contract and look forward to providing our proprietary ethylene technology and engineering and construction expertise to such a significant project. The Al-Jubail facility, which will be one of the largest in the world, will enhance SHARQ's leadership position in the petrochemical arena and showcase Shaw's expertise in downstream ethylene technologies."

Ethylene is an intermediate petroleum product primarily used in the production of other chemicals, particularly plastics, including polyethylene and polypropylene, the world's most widely used plastic. The 1.3 million metric tons-per-year plant will provide ethylene for an ethylene-glycol plant and a polyethylene plant at the same location.

SHARQ, a joint venture equally owned by Saudi Basic Industries Corporation and SPDC Ltd, a Japanese consortium led by the government of Japan and the Mitsubishi group of companies.

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Posted 20/10/05

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