Samsung Engineering, a prominent South Korean firm, has officially announced that it has secured the front-end engineering and design (FEED) contract for Alujain Corporation’s upcoming propylene plant in Saudi Arabia’s Yanbu Industrial Complex. This development was initially disclosed by MEED earlier this month.
In a statement, Samsung confirmed that it has received the notice of award for the FEED contract, which pertains to the facility being developed by Alujain. This facility is slated to produce propylene and polypropylene (PP), along with associated utilities and offsite infrastructure.
The contract holds a value of $19.4 million, with FEED activities expected to be conducted at Samsung Engineering’s headquarters in Seoul, South Korea, until May 2024. MEED Projects, a regional project-tracking service, has estimated the engineering, procurement, and construction (EPC) contract for the project to be valued at around $2 billion.
The propane dehydrogenation (PDH) plant, responsible for propylene production, will boast an annual capacity of 600,000 tonnes, while the PP plant will have an annual capacity of 500,000 tonnes.
Samsung Engineering expressed its gratitude for Alujain’s continued trust by awarding them the FEED contract after a prior engagement for the pre-FEED contract. Furthermore, the company expressed its intention to pursue and secure the EPC contract for this petrochemical project, anticipating its release in mid-2024.
Notably, Samsung Engineering has already completed 32 projects in Saudi Arabia, including five propylene-related ventures. The company also contributed to the Luberef lube base oil plant in Yanbu, situated in proximity to the planned Alujain petrochemical project.
Hong Namkoong, the President and CEO of Samsung Engineering, emphasized the company’s commitment to applying innovative technologies as they progress from the initial pre-FEED stage to the FEED stage of this significant project.
In May, it was revealed that Alujain had selected US-based Lummus Technology’s C3 Catofin PDH technology for the proposed propylene plant. Lummus Technology’s scope of work encompasses providing the technology license and basic engineering.
Alujain had previously announced its intention to expedite work on this project, aiming to enhance its business operations by accelerating the development of engineering works, followed by construction and operation of the new factory, which will produce propylene, polypropylene, and other specialized products, as disclosed in a filing with the Saudi Stock Exchange (Tadawul) on April 10th.