Gulf Petrochemicals set for $1.5bn expansion
Manama, April 28, 2014
By Avinash Saxena
Bahrain-based Gulf Petrochemicals Industry Company (GPIC) is close to securing gas allocation from the government for its $1.5 billion expansion project, it has emerged.
Speaking on the sidelines of the MEED Bahrain Energy 2014 Forum, the company's president Dr Abdulrahman Jawahery told the Gulf Daily News, our sister publication, that an additional 95 million cubic feet of gas will be needed for the planned production of 2,400 tonnes per day of ammonia and 3,200 tonnes per day of urea.
GPIC currently produces about 1,900 tonnes per day of urea.
Tenders for construction contracts for the project are likely to be issued by the end of the year, Dr Jawahery said.
"Engineering, procurement and construction tenders will be issued immediately after completion of all feasibility studies."
GPIC is equally owned by Noga, Saudi's Sabic and Kuwait's Petrochemical Industries Company.
The expansion will see the addition of a new ammonia plant, a granular urea plant, and urea granulation unit, together with utilities and associated offsite facilities.
"It will more than double the existing capacity and also lead to at least 250 more jobs being created at the company and 2,000 contractor jobs during the construction process," Dr Jawahery said.
"If we can secure the gas we will move this year and expect to start operations by 2018," GPIC manufacturing general manager Fadhel Al Ansari told participants at the forum.
"It is an important project for Bahrain as it will add $227 million per annum to the economy," he said.-TradeArabia News Service