Yanpet Expansion Phase I & II

Saudi Yanbu Petrochemical Company (Yanpet) awarded a Phase I Program Management Contract to provide the front-end engineering design (FEED) and procurement of critical equipment and materials for a major expansion of their integrated petrochemicals complex in Yanbu, Saudi Arabia. The expansion facilities provided 800,000 metric tons per year of ethylene capacity and converted ethylene into 535,000 tons of polyethylene and 410,000 tons of ethylene glycol. In addition, it provided 260,000 tons of polypropylene using Union Carbide Unipol technology.

For Phase II, Fluor provided engineering, procurement and construction (EPC) services for the utilities and offsites, as well as polymer engineering and procurement services. Fluor also assisted the owner as program manager.

The expanded Yanpet complex became one of the largest petrochemical plants in the world, producing more than 1.6 million tons of ethylene annually plus two million tons of ethylene derivative products.

Client's Challenge

Yanpet is a 50-50 joint venture between Mobil Yanbu Petrochemical Company Inc., an affiliate of ExxonMobil Chemical, and the Saudi Basic Industries (SABIC). The goal of the project was to double the capacity of the existing complex to allow Yanpet to be the world's lowest cost ethylene producer. The capital investment was valued at over $2.5 billion.

Fluor's Solution

During the 14-month Phase I, Fluor performed more than 400,000 work hours of FEED and long-lead procurement work. The company also prepared the appropriation cost estimate for Phase I.

For Phase II, Fluor performed detailed EPC assistance for a major polymers expansion project at the Yanpet Petrochemical Complex. Mitsubishi Heavy Industries (MHI) was the lump-sum turnkey contractor. Fluor performed all engineering and procurement services and supported MHI in construction management.

The new facilities for this scope of work, which were a portion of a larger expansion project, included a two-train polyethylene plant (535,000 metric tons per year) and a polypropylene plant (260,000 metric tons per year) using Union Carbide Unipol technology. Additional scope of work for each plant included feed purification, catalyst preparation, reaction and finishing sections and the associated offsites and utilities.

Conclusion

Fluor's Value Engineering, Value Awareness, and Constructability teams identified significant savings for this project and reduced or eliminated schedule risk. Mechanical completion was achieved in April 2000, making the Yanpet polyethylene plant the largest in the world.