Saudi Kayan awards $95 mln contract to Taiwan’s CTCI

Saudi Kayan Petrochemical Co. has awarded Taiwan's CTCI Corp. a contract worth $94.5 million (SAR 354.4 million) to build a new furnace cracker at its complex in Jubail Industrial City, the company said in a bourse statement on Monday.

Under the deal, CTCI will manage the engineering, procurement and construction management (EPCM) for the project, which is located in the Eastern Province of Saudi Arabia.

The company added that it will secure the related finance from local institutions, expecting to complete the new cracker in H2-2017.

The date of trial operation and the expected financial impact will be announced later.

The new cracker comes as part of Kayan’s agreement, which was signed on February 5, 2015, with the Ministry of Petroleum and Mineral Resources and Saudi Basic Industries Corp. (SABIC) to enhance the company’s business and financial performance in return for extra ethane gas allocations.

Kayan is 35 percent-owned by SABIC.