October 19 (Reuters) -- Saudi
Kayan Petrochemical Co, a unit of Saudi Basic Industries Corp, has
reissued a tender for the construction of a low density polyethylene
plant in Jubail, sources said.
Kayan has asked contractors to resubmit bids for the building of the
300,000 tonne per year and a 210,000 tpy amines plant, contracting
sources said.
The Kayan complex was due online in 2010 and will have an annual
production capacity of 5.6 million tpy of petrochemical products.
Saudi-based contractors submitted their proposals last month for the
LDPE project.
"We have submitted our proposals by Sept 27, they are under evaluation
right now," one contractor said. "Everything will be finalised within
this year; it will take 25-26 months to be completed."
The retendering means that at least part of the plant would only be
completed until 2012, contractors said. The first tender was awarded to
UK Simon Carves, a unit of Indian Punj Lloyd, in 2007 as a fixed-price
services contract.
"The contract Simon Carves had in Al-Jubail was a lump sum engineering
services contract convertible, on mutually agreed and acceptable terms
to both parties, to a lump sum engineering, procurement and
construction contract," Punj Lloyd told Reuters in an e-mail.
"The parties have mutually agreed not to convert it into a lump sum turn key EPC contract.
Accordingly, the parties have decided to close the engineering services
contract on mutually acceptable terms," Punj Lloyd added.
The amines plant was awarded to Samsung Engineering in 2007. That deal
will also soon be retendered to secure lower prices, three sources in
the contracting industry told Reuters.
