Korean contractor wins Saudi chemicals plant contract
19 February 2024
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Advanced Polyolefins Company, a subsidiary of Saudi Arabia’s Advanced Petrochemical Company, has awarded South Korean contractor SGC eTEC Company the main contract for building an isopropanol plant in the kingdom’s Jubail Industrial City.
SGC eTEC Company, along with its local unit SGC Arabia, will perform engineering, procurement and construction (EPC) works on the planned isopropanol facility.
The value of the EPC contract is $191.25m, Saudi Exchange-listed Advanced said in a filing on 18 February.
The isopropanol facility will have an output capacity of 70,000 tonnes a year (t/y) and use technology provided by Thyssenkrupp Uhde Engineering Services.
The duration of the EPC works is 32 months, with the commissioning of the project expected to take place in the last quarter of 2026.
Advanced first announced the isopropanol project in October 2020. The plant will be part of Advanced Polyolefins Company’s upcoming greenfield petrochemicals facility in Jubail.
Greenfield petrochemicals complex
Advanced owns the majority 85% stake in Advanced Polyolefins Company, with South Korea’s SK Gas Company holding the remaining 15%.
Advanced Polyolefins Company’s upcoming petrochemicals facility in Jubail 2 will have the combined capacity to produce more than 1.6 million t/y of propane dehydrogenation (PDH) and polypropylene compounds.
The complex is expected to manufacture 843,000 t/y of propylene and 800,000 t/y of polypropylene, which will be used to produce specialty polymers for the face mask, automotive, piping, food packaging and textile industries.
Advanced Polyolefins Company awarded the main EPC contracts for the project to South Korea’s Samsung Engineering and Italy-headquartered Maire Tecnimont in April 2021.
Samsung Engineering secured contracts worth a combined $1.2bn for two packages of the project. The South Korean contractor is executing EPC and project management works to build the PDH unit, as well as work on the utilities and offsites package. It expects to finish work on both packages in 2024.
Maire Tecnimont won a $500m contract to build two polypropylene-producing units with a production capacity of 400,000 t/y each. The Italian contractor also expects EPC works on its package to be completed in 2024.
Saudi contractor Al Rushaid Construction Company was awarded a contract in December 2021 to execute civil works for the project.
South Korea’s SK Engineering & Construction has executed the front-end engineering and design work on the project.
US-headquartered Fluor Corporation is the project management consultant.
US energy contractor McDermott International’s subsidiary Lummus Technology is the provider of licensed technology and basic engineering services for a C3 Catofin unit as part of the project.
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Kuwait awards $381m oil project23 September 2026
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State-owned upstream operator Kuwait Oil Company (KOC) has awarded an oil project contract worth KD117m ($381m) to India’s Megha Engineering & Infrastructure (Meil).
The Supreme Purchasing Committee for Kuwait Petroleum Corporation (KPC) approved the contract last month, paving the way for the official award.
The project focuses on a water separation unit at the Al-Rawdatain facility in Kuwait.
The water separation facility will be developed at Gathering Centre 25 (GC-25), along with a pumping facility at GC-30.
The project will deliver a wide-ranging upgrade of processing and utility infrastructure, including new low-pressure separation and gas-handling equipment such as a three-phase wet separator package, a gas knock-out drum and associated low-pressure gas pipelines, as well as a high-integrity pressure protection system and a high-pressure flare.
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Additional GC-25 facilities will include fuel gas treatment, chemical injection, oil recovery and flare connections, along with firewater and deluge systems.
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At GC-30, the project will focus on treated-water filtration and high-pressure injection infrastructure.
The scope includes nutshell filters and associated feed pumps with a combined capacity of approximately 500,000 barrels of water a day.
Booster and injection pumps will transfer treated effluent water to designated injection wells.
Additional facilities at GC-30 will include fuel gas treatment, sludge collection and disposal systems, oil recovery systems, control and safety systems, substations, laboratory and workshop facilities, and associated civil, structural, piping, mechanical, electrical and instrumentation works.
The project also includes transfer pipelines connecting GC-25, GC-15 and GC-30.
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Meil’s responsibilities cover the project lifecycle from design and engineering through procurement, construction, testing, pre-commissioning, commissioning, start-up and performance testing.
The contract also includes operation, maintenance, repair and insurance responsibilities for the designated facilities during the applicable operations and maintenance period.
Seven companies submitted bids for the project last November.
The full list of bids was:
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- Mechanical Engineering & Contracting Company (Kuwait) – KD130m
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Kuwait refinery project on track for year-end completion23 September 2026

A $65m project to replace a substation at the Mina Al-Ahmadi (MAA) refinery is on schedule to be mechanically complete before the end of the year, according to industry sources.
The project is being executed by India’s Larsen & Toubro (L&T), which was awarded the contract in October 2024.
One source said: “This project is approaching completion and is currently on schedule to be completed before the end of the year, although it could still see delays related to the ongoing regional conflict.”
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The current project to replace a substation at the MAA refinery closely resembles another project tendered by KNPC more than a decade ago, which L&T also won.
On 18 May 2015, KNPC signed a contract with L&T to build a new 240MW substation at the MAA refinery, valued at KD21.866m.
The new substation, known as M20, was designed to replace an existing substation that was considered old and obsolete.
Mohammed Al-Mutairi, who was KNPC’s chief executive at the time, said the substation building would be explosion-proof and use state-of-the-art control systems.
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Contractor wins $208m Almoosa hospital MEP contract23 September 2026
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Riyadh-based construction firm BEC Arabia has won a SR781m ($208m) contract for the mechanical, electrical and plumbing (MEP) works at Almoosa Hospital in Al-Khobar.
Saudi Arabia’s Almoosa Health Company awarded the contract.
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Contractors prepare Oxagon Highway 55 bids23 September 2026

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