Alujain’s NATPET inks $65 mln deal to restore chemicals plant

Alujain Corporation’s (Alujain) subsidiary, National Petrochemical Industrial Co. (NATPET) signed on Feb. 28 a contract with Tecnimont Arabia Co. Ltd. (TAL) to reinstate the units damaged by fire at NATPET’s polypropylene (PP) complex, Alujain said in a bourse statement on Monday.

Under the contract, TAL will provide engineering, procurement, and construction (EPC) services, material and equipment supply, along with other construction and supervision services.

The scope of work under the contract, valued at $65 million (SAR 244 million), has an estimated execution schedule of about seven months, Alujain said, adding that some engineering services have started up.

“Operations are expected to commence in the first half of October 2019,” the statement added.

Other developments as well as the related financial impact will be disclosed later on, Alujain added.

In October, a fire broke out at NATPET polypropylene plant in Yanbu, killing one worker and injuring 11 others.

Alujain Corp. owns 57 percent of NATPET.