Saudi Kayan reissues tender for the construction of LDPE plant in Jubail

Saudi Kayan Petrochemical Co, a unit of Saudi Basic Industries Corp., has reissued a tender for the construction of a low density polyethylene plant (LDPE) in Jubail. Saudi Kayan has asked contractors to resubmit bids for the building of the 300,000 tpa LDPE plant and a 210,000 tpa amines plant. Saudi -based contractors submitted their proposals last month for the LDPE project. The first tender was awarded to UK Simon Carves, a unit of Indian Punj Lloyd, in 2007 as a fixed-price services contract. The amines plant was awarded to Samsung Engineering in 2007. This deal will also soon be retendered to secure lower prices. The Kayan complex was due online in 2010 and will have an annual production capacity of 5.6 million tpa of petrochemical products. The progress could be setback with this retendering. All details are expected to be finalised within this year; after which the plant will take 25-26 months to be completed – until 2012.
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