MMG inks US $109mn Jubail deal

Jubail One industrial zone.

Mohammad Al Mojil Group (MMG) has signed a US $109 million (SAR409 million) sub-contract for construction of part of an ethylene plant at the National Chevron Phillips olefins complex in Jubail.

MMG started preparatory works at the Jubail project site shortly after signing a letter of intent for the project in February. Work is expected to be complete by the middle of 2011.

The contract was awarded by EPC contractor Japan-based JGC Corporation. The signing of the contract officially confirms the deal.

“It should be noted that the construction work and construction had begun at the time of signing,” MMG said in a note posted on Tadawul, the Saudi Arabia stock exchange.

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MMG was also awarded a $29 million sub-contract for utilities works on the same project by Daelim Saudi Arabia last year.

The deal involved the construction of buildings, facilities, air conditioning systems and auxiliary services. 

“The group had already indicated that it had begun preparatory work in different locations of the project under a separate, civilian contract,” the note said.

The National Chevron Phillips complex is being developed by a joint venture between the Saudi Industrial Investment Group and the US-based Chevron Phillips Chemical Company.

Work has continued to flow through Jubail, driven by the need to extend the industrial city to cash in on the country’s wealth of natural resources.

Last week a memorandum of understanding was signed by Saudi Basic Industries Corporation (Sabic) vice president Mutlaq Al Morished and (Saudi International Prtrochemical Company) Sipchem CEO Ahmad Al Ohali to build nine new petrochemical plants in Jubail.

Sabic will build seven plants at a cost of $3.2 billion, while Sipchem will build the remaining two at a cost of $810 million. The two petrochemicals giants hope to have the plants complete by 2013.

 

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