TASNEE Project

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Executive Summary

Client's Challenge

Fluor's Solution

Conclusion

In 2004, Fluor, together with TASNEE, formed an integrated project management team that oversaw the entire Ethylene Cracker / PE complex, resulting in contract awards to a consortium of Linde / Samsung in July of 2005 for the cracker project and Tecnimont in January 2006 for the PE projects. This trendsetting project management approach resulted in the ethylene cracker plant completed safely, ahead of schedule, and within budget in August 2008, HDPE in Nov 2008, and LDPE in Jan 2009.

TASNEE (formerly known as National Industrialization Company NIC) was founded in 1985 as the first Saudi joint-stock company wholly owned by the private sector. The company was set with a strong belief that industrialization was the right choice for economy diversification and accelerating development of the Kingdom of Saudi Arabia.

As part of a long-term development program in Saudi Arabia, TASNEE, together with their partners Basell and Sahara, wanted to build an ethylene cracker plant with a capacity of 1,000 KTPA of ethylene and 300 KTPA of propylene, with a downstream high density polyethylene (HDPE) and low density polyethylene (LDPE) plants with a capacity of 400 KTPA each, and associated utilities and offsites. For TASNEE, being the leader of Saudi private petrochemical sector, this was a “quantum step” growth in production, and at the same time a challenge to complete the projects successfully in a largely overheated engineering, procurement, and construction (EPC) market.

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As a part of an integrated management team, Fluor was involved in a large spectrum of activities, holding key EPC positions, making it very different from a regular project management environment.

The project team worked in Fluor’s Haarlem office, Linde’s Munich office, Samsung’s Seoul office, and Tecnimont’s Milan / Mumbai offices for the basic and detail design work. At the end of the detail engineering phase of the project, the teams moved to the Al Jubail, Saudi Arabia jobsite to complete the project.

The project team was comprised of a multi-national and multi-cultural workforce; the project management team worked diligently to ensure that all team members are well aligned toward achieving the common goal of completing the projects safely, within budget, and on schedule.

During construction, the onsite workforce peaked at 8,700 personnel, during which time the project achieved 32.5 million safe hours; the total recordable incident rate was 0.02, and overall weld reject rate 0.6%, both being truly world-class safety and quality results.

Several novelties were introduced in executing these projects; all employed more profoundly and at a larger extent than applied on peer projects. These included, “early works” - involving design, procurement, and construction activities; early procurement; very much front-end loaded construction; effective risk management; higher degree but tightly controlled overlap between engineering and construction; and truly integrated TASNEE / Fluor project management concept with no “shadow” functions.

Using an innovative, integrated project management approach and several novelties in execution, Fluor and TASNEE oversaw the successful completion of the Ethylene Cracker / PE Complex in Al Jubail, Saudi Arabia. Remarkable project results were achieved in all key domains; ahead of contractual schedule, within original cost budget, world-class safety performance, and excellent quality. All of these allowing TASNEE to start delivering their products to customers and create revenue much earlier than their industrial peers.

These projects received several awards during execution: “Best Deal of the Year 2006” from Project Finance International, a leading publication in project financing; TOP HSE (Total Outstanding Project) Award from Fluor’s Group President for 2007; and Chemical Business Line 2007 TOP HSE Award.

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