FW Secures Project Management Contract In Saudi Arabia

Foster Wheeler Energy Limited has been appointed as project management contractor (PMC) by Gulf Farabi Petrochemicals Company Limited (a company promoted by the Al-Rajhi Group of Companies - Al-Rajhi International Contracting) for its Linear Paraffin (n-Paraffin) Series and Linear Alkyl Benzene (LAB) Project.

The $250 million grassroots plant will produce 120,000 metric tonnes per annum of n-Paraffin and 70,000 metric tonnes per annum of LAB. It will be located in Al-Jubail, Saudi Arabia, adjacent to the SASREF Refinery that will supply the kerosene feedstock, signifying a collaboration between Gulf Farabi Petrochemicals and Saudi Aramco Shell Refinery Company. Additionally, Gulf Farabi Petrochemicals have also collaborated with local producers for fuel gas, nitrogen and hydrogen.

Phase 1 (the definition phase) is scheduled for completion at the end of 2002. During this phase, Foster Wheeler will develop the project specification from UOP design packages, prepare the environmental impact assessment report, issue invitations to bid for the engineering, procurement and construction (EPC) contract and make the EPC award recommendation to an international contractor. The project has already kicked off with the attendance of Gulf Farabi Petrochemicals and Foster Wheeler at the UOP Design Conference for the joint n-Paraffin and LAB scope.

Additionally, in conjunction with its In-Kingdom partner, Radicon Gulf Consult, Foster Wheeler will prepare the design specification for the utilities and services. Radicon Gulf Consult will also be responsible for the processing of local approvals and permits on behalf of Foster Wheeler.

During Phase 2 (the engineering and construction phase), Foster Wheeler will manage the project through the EPC phase and will further provide construction management services and commissioning assistance through to the successful production of n-Paraffin and LAB. Completion of the plant will be in the fourth quarter of 2004 with commercial production also planned for the same quarter of 2004.

The execution of Phase 1 will be undertaken from Foster Wheeler's Glasgow operations centre in the UK. During Phase 2, the PMC support team will be based initially in the selected EPC contractor's design office before finally relocating to the Al-Jubail site in Saudi Arabia.

Gulf Farabi Petrochemicals commented that 55,000 metric tonnes of the plant's annual production of n-Parrafin will be dedicated to the production of LAB whilst the remaining capacity will be exported to Asian countries. Part of the production of LAB will be for domestic consumption whilst the balance will be exported to the Gulf countries, Middle East and North Africa to meet the increasing demand of LAB in the production of domestic and industrial detergents.

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