meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi chemical project contract awarded

28 August 2024

Register for MEED's 14-day trial access 

Saudi Arabia’s Sahara International Petrochemical Company (Sipchem) has awarded the main contracts for a project to expand propylene and polypropylene plants in the Jubail area.

The contracts use the engineering, procurement and construction (EPC) model and will expand plants operated by Al-Waha, one of Sipchem’s affiliate companies.

The expansion project will boost production capacity at the facility by 72,000 tonnes of propylene and 150,000 tonnes of polypropylene.

The contracts were awarded to South Korea’s SGC eTEC Company and its subsidiary SGC Arabia and were worth a total of $169m, according to a stock market filing.

The contract duration is 28 months and the total production capacity after the expansion will be approximately 537,000 tonnes of propylene and 600,000 tonnes of polypropylene.

In its filing, Sipchem said: “This project reflects Sipchem's continuous efforts to enhance its production capacity and efficiency.

“Increased polypropylene production will contribute significantly to many industries, including automotive, fiber and food packaging films.

“This expansion will strengthen the company's position in the market and support its growth strategy.”

Chemicals expansion

In February, Advanced Polyolefins Company, a subsidiary of Saudi Arabia’s Advanced Petrochemical Company, awarded SGC eTEC Company the main contract for building an isopropanol plant in the kingdom’s Jubail Industrial City.

Under the terms of that award, SGC eTEC Company, along with its local unit SGC Arabia, will perform EPC works on the planned isopropanol facility.

The value of that 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.

SGC eTEC Company is also executing the main contract for a project to expand an ethylene cracker facility that is operated by Saudi Ethylene & Polyethylene Company (SEPC) in the Jubail area.

In February, SGC eTEC Company awarded Saudi Arabia's Al-Rushaid Construction Company (ARCC) a subcontract to perform construction works on the project.

SEPC awarded an approximately $500m contract to SGC eTEC Company, on 21 December last year, to perform the main EPC works on the project.

Tasnee Sahara Olefins Company (TSOC) is the majority shareholder in SEPC, owning a 75% stake. The remaining 25% stake is held by Dutch-American chemicals producer LyondellBasell.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12418942/main.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Riyadh sets December deadline for Prince Mishaal Road

    20 November 2025

     

    The Royal Commission for Riyadh City (RCRC) has allowed contractors until 3 December to submit bids for a contract to develop Prince Mishaal Bin Abdulaziz Road Axis-Taif Road in Riyadh.

    The previous deadline was 19 November.

    The scope of work covers general road improvement works, including street upgrades, drainage works, relocation of existing utilities, dry and wet utilities, and other associated infrastructure. RCRC is investing in improving the road network in and around the kingdom's capital.

    Earlier in November, MEED reported that RCRC had begun post-tender clarifications with bidders for a contract covering upgrade works on Najm Al-Din Al-Ayoubi Road in Riyadh.

    The scope of work covers general road improvement works, including upgrades to three bridges at Al-Zahabi Road, Abdulrahman Adakhel Road and Atia Al-Saady Road.

    In February, RCRC announced plans to develop eight road projects in Riyadh at an estimated cost of more than SR8bn ($2bn).

    The projects form part of the second group in the Riyadh Ring Roads and Main Axes development programme.

    The schemes include:

    • The northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road development project, with a length of more than 6 kilometres (km). The scope includes the development of two main intersections, the construction of three bridges and a tunnel.
    • The middle section of the Al-Thumama Road Axis development project. The scheme will cover about 10km and includes the development of five main intersections and the construction of 11 bridges and five tunnels.
    • The Imam Abdullah Bin Saud Road development project, which will stretch about 9km and includes the development of four main intersections, the construction of three bridges and two tunnels.
    • The Dirab Road development project, which will cover 9km and includes the development of two main intersections and the construction of nine bridges.
    • The Imam Muslim Road development project, which stretches 12km and includes the development of four main intersections and the construction of four bridges. The project will serve as the future extension of the Prince Turki Bin Abdulaziz Al-Awwal Road Axis to the south.
    • The road network development project surrounding King Abdullah Financial Centre, with a length of 20km. This includes the development of three main intersections and the construction of 19 bridges.
    • The construction of a bridge at the intersection of King Salman Road in the east with Abu Bakr Al-Siddiq Road in the north.
    • The first package of engineering modifications for crowded sites in Riyadh, encompassing improvements to alleviate traffic congestion during peak times.

    In August last year, RCRC confirmed it had awarded four contracts worth SR13bn ($3.46bn) as part of the first phase of the programme to develop the city’s road network.

    RCRC said the first phase will develop the axis of the main and ring roads to improve traffic movement in the city.

    Other major projects by RCRC include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park and the Green Riyadh project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15123861/main.jpg
    Yasir Iqbal
  • Riyadh advances with rail link prequalifications

    20 November 2025

     

    Saudi Arabia Railways (SAR) is expected to begin the second stage of the prequalification process for a contract covering the construction of a new railway line, known as the Riyadh Rail Link, which will run from the north to the south of Riyadh.

    MEED understands that the consortiums need to propose self-funded financing arrangements for the project as part of the new round of prequalifications.

    Contractors submitted their initial prequalification documents earlier this month.

    The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South Railway to the Eastern Railway network.

    The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.

    The project is expected to form a key component of the Saudi Landbridge railway.

    The Saudi Landbridge is an estimated $7bn project comprising more than 1,500km of new track. Its core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

    Other key sections include upgrades to the existing Riyadh-Dammam line and a link between King Abdullah Port and Yanbu.

    The start of tendering activity for the Riyadh Rail Link project makes the construction of the Saudi Landbridge more likely. 

    The project is one of the kingdom’s most anticipated infrastructure programmes. Plans to develop it were first announced in 2004, but the project was put on hold in 2010 before being revived a year later.

    Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

    In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.

    If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East – and among the biggest globally.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15123411/main.jpg
    Yasir Iqbal
  • Local contractor bids low for $629m Kuwait oil project

    20 November 2025

    Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid on a contract to develop oil and gas facilities at the Sabriya and Bahra oil fields.

    The scope of the project is focused on developing a water separation facility next to Gathering Centre 23 (GC-23) and GC-24.

    It also includes developing an injection facility at GC-31.

    The full list of bidders for the project is:

    • Mechanical Engineering & Contracting Company (MECC) – KD193m ($629m)
    • Spetco – KD229m
    • Alghanim International – KD239m

    The tender was issued on 15 December 2024, with an initial bid submission deadline of 16 March 2025.

    The bid deadline was extended more than 10 times before prices were submitted.

    The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).

    The scope of the project includes:

    • Installation of a high-integrity pressure protection system
    • Installation of chemical injection systems
    • Installation of effluent water transfer pumps
    • Installation of a low-pressure (LP) gas pipeline from the new LP gas knockout drum (KOD) to existing LP separator gas crude accumulator (inside GC-23 & 24)
    • Installation of interconnecting piping, instrumentation, electrical and civil works
    • Installation of a new oil recovery system with pumps, flowmeter and analyser
    • Installation of the substation and its equipment/systems
    • Installation of tie-ins for process and utilities from/to existing GC-30 to new injection facility
    • Installation of sludge collection, treatment and disposal system
    • Associated facilities

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, aims to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15120909/main.png
    Wil Crisp
  • Oman’s Marafiq retenders Duqm desalination plant

    20 November 2025

    Register for MEED’s 14-day trial access 

    Oman-based Central Utilities Company (Marafiq) has reissued the main contract tender for its planned seawater reverse osmosis (RO) desalination plant in Duqm.

    The revised submission deadline is 25 November.

    The project has an estimated budget of $100m and will supply industrial water and support wastewater services in the Duqm Special Economic Zone.

    The scheme involves building a seawater RO plant, an intake system, pre-treatment facilities, pumping stations, metering stations, pipelines and associated infrastructure.

    Marafiq is developing the project in its capacity as the authorised utilities provider for the Duqm Special Economic Zone.

    The company intends to develop a plant with a capacity of 45 million litres a day to serve industrial customers, including a planned hot-briquetted iron (HBI) facility proposed by an international steel manufacturer at Duqm Port. 

    Spain’s Cobra Group and Oman’s Global Chemicals & Maintenance System were previously prequalified to bid for the engineering, procurement and construction contract.

    The main contract was initially tendered in December 2024, with the bid submission deadline in February. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15116821/main.jpg
    Mark Dowdall
  • Wood Group wins Iraq oil contract

    20 November 2025

    Register for MEED’s 14-day trial access 

    Aberdeen-based Wood Group has won a contract to deliver project management and engineering services for PetroChina at the West Qurna-1 oil field in southern Iraq, according to a statement from the company.

    Under the terms of the contract, Wood will manage engineering, procurement and construction (EPC) projects at the field. 

    Located approximately 50 kilometres northwest of Basra, West Qurna-1 holds more than 20 billion barrels of recoverable reserves.

    Ellis Renforth, Wood’s president of operations for the Europe, Africa and Middle East region, said: “This contract award deepens our decade-long partnership at West Qurna-1 and reflects the continued trust placed in Wood to deliver complex energy solutions in Iraq. 

    “We’re proud to combine our global expertise with a strong local workforce to help support Iraq’s energy ambitions.”

    The contract will be delivered by nearly 200 Wood employees based in Iraq and the UAE, the company said.

    On 17 November, in a vote, 88% of Wood Group’s shareholders backed the company’s takeover by Dubai-based Sidara.

    The vote came after months of delay, while Wood struggled to agree its accounts with its auditor.

    The company’s accounts were eventually published on 30 October, showing a pre-tax loss of more than £2bn and evidence that the auditor was still not satisfied with the figures going back several years.

    Wood Group accepted a $292m conditional takeover bid from Sidara in August.

    As of February, Wood Group employed 35,000 people across about 60 countries, many in consulting and engineering roles.

    In the Middle East, the company has project contracts in Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, where it has opened its third office in Sharjah.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15122155/main.png
    Wil Crisp