USA:Shaw & SHARQ JV to set up ethylene plant in Saudi Arabia

Engineering, construction, fabrication, environmental and industrial services organization, The Shaw Group Inc announced that its Shaw Stone & Webster unit has signed a letter of intent with Eastern Petrochemical Co, also known as SHARQ, for engineering, procurement, construction, and commissioning of a 1.3 million metric tons-per-year ethylene plant utilizing Shaw Stone & Webster ethylene technology.

Under the letter of intent, Shaw will immediately begin the engineering and procurement activities. The plant will be located in Al-Jubail, Saudi Arabia and is expected to be completed in the first quarter of 2008. The value of the project was not disclosed.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "The global reach and proprietary technologies continue to create business opportunities in every corner of the world. Shaw is very pleased to have been selected to provide its proprietary ethylene technology and engineering and construction expertise to this important project. This premier facility will be one of the largest in the world and will enhance SHARQ''s leadership position in the petrochemical arena."

Ethylene is an intermediate petroleum product primarily used in the production of other chemicals, particularly plastics, including polyethylene and polypropylene, the world''s most widely used plastic. The 1.3 million metric tons-per-year plant will provide ethylene for an ethylene-glycol plant and a polyethylene plant at the same location.

SHARQ, a joint venture equally owned by Saudi Basic Industries Corporation and SPDC Ltd, a Japanese consortium led by the government of Japan and the Mitsubishi group of companies.

Shaw Stone & Webster is an established leader in the world of ethylene technology, having provided technology, design, engineering and/or construction on more than 120 ethylene plants worldwide. Approximately 35 percent of the world''s incremental production during the last decade has been based on Shaw Stone & Webster technology.

Ethylene plants using Shaw Stone and Webster technology have established a worldwide reputation for exceptionally high operational reliability, rapid startup and superior performance. Earlier this year, Shaw Stone & Webster completed a 600,000 metric ton-per-year ethylene plant that it engineered and constructed in Nanjing, China for BASF-YPC.

Louisiana based The Shaw Group Inc is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for the energy, chemicals, environmental, infrastructure and emergency response markets.
 
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