DSI wins $600m Egypt petchem project deal
Dubai, May 13, 2014
Drake & Scull International (DSI), a regional market leader in the integrated design, engineering and construction, has won a major deal worth Dh2.2 billion ($600 billion) related to Egypt's new Tahrir Petrochemical Corporation (TPC) Project.
Under the terms of the agreement with Egypt-based Carbon Holdings, DSI will exclusively join the international consortium of companies comprising Maire Tecnimont, a leading world conglomerate in Engineering & Construction, Technology & Licensing and Energy and Ventures and Archirodon Group, a large diversified international contracting organization to collaboratively undertake the engineering, procurement, construction and commissioning (EPCC) activities related to the utilities and offsite facilities of the project.
The scope of work for DSI will encompass the complete OSBL construction works and civil works, including storage facilities and ancillary buildings for an approximate contract value of Dh2.2 billion.
The TPC project is located at the entrance of the Suez Canal in Ain Sokhna, Egypt. Carbon Holdings is aiming to commence construction of its $5 billion-plus TPC Project in 2015.
TPC is seeking to secure in excess of $3.4 billion of funding and loan guarantees from the Export-Import Bank of the United States, The Export-Import Bank of Korea, the Korea Insurance Corporation and the Italian Export Credit Agency, SACE. The megaproject which includes Egypt’s first naphtha cracker will create in excess of 20,000 jobs during the construction phase, Carbon Holdings said.
Once complete, the project will comprise a 4 million tonne-per-year (tpy) naphtha cracker and related downstream facilities with the capacity to produce 1.4 million tpy polyethylene, 900,000 tpy propylene, 250,000 tpy butadiene, 350,000 tpy benzene and 100,000 tpy hexene-1.
In December last year TPC signed the EPC contract for the ISBL with Linde and SK ENC.
Carbon Holdings anticipates the project will be a driving force for other petrochemical and downstream projects in Egypt and could create up to 100,000 direct and indirect jobs in related industries.
Khaldoun Tabari, CEO of Drake & Scull International, said: “DSI is pleased to be part of this international consortium delivering this vital project which will transform Egypt’s petrochemical sector. Egypt is our key market in North Africa and the project will enable us to further strengthen our position in the country where we already have a significant presence across the Oil & Gas, Waste Water and Water treatment and Hospitality sectors.” - TradeArabia News Service