IHS Chemical Week

Markets :: Plastics :: Polyethylene

Saudi Kayan Terminates Two Contracts; Commissioning Will be Delayed

5:12 AM MST | November 9, 2009 | Natasha Alperowicz

Saudi Kayan is reportedly re-tendering two contracts, which is expected to delay completion of its $10 billion petrochemical complex at Al Jubail. The contracts affected are for the construction of a 300,000-m.t./year low-density polyethylene (LDPE) plant and a 210,000-m.t./year amines facility. Sources cite a slump in commodity prices and lower engineering, procurement and construction (EPC) costs over the past year. Simon Carves, the EPC contractor on the LDPE plant, confirms to CW that its contract has been terminated. The company says it is still...

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