Japans JGC Corporation has signed a deal to expand an ethane cracker for the Rabigh II petrochemicals complex owned by Saudi Aramco and Sumitomo Chemical
The contract has been valued in the range of US$100-200mn according to an anonymous industry source, who did not wish to reveal their identity as the deal had not yet been made public.
In addition to expanding the ethane cracker, a new aromatics complex will be built, using approximately 3.3mn tonnes per year of naphtha to make higher value petrochemicals for the Rabigh II mega complex.
Aramco and Sumitomo have taken longer than expected to pick contractors for the Rabigh II petrochemical expansion project, which is expected to cost around US$7bn.
South Korea’s GS Engineering and Construction and Daelim Industrial, Italy’s Saipem and Britain’s Petrofac have all signed contracts to build the second phase of the Saudi Arabian complex.
