Petro Rabigh said to cancel 2 petrochemical projects

Saudi Arabia’s Rabigh Refining & Petrochemical Company (Petro Rabigh) has scrapped two of the three packages from its planned clean fuels project, MEED reported, citing unnamed sources familiar with the projects.

Among the cancelled projects is the polyols production plant with a capacity of 220,000 metric tons (MT) per year of polyether polyols, as well as a sulphur recovery unit with a capacity of 106,000 MT per year.

Petro Rabigh is still said to be assessing bids on the third package to build a Naphtha processing unit, with an expected capacity of 17,000 barrels per day of clean fuels.

Italy’s Tecnimont submitted the lowest bid for the third project, sources said, adding that the unit will likely be built at the company’s site in Rabigh, located in Makkah province.

Petro Rabigh had tendered the three engineering, procurement and construction (EPC) packages in October, and received bids for the projects in February.