MRC -- Tasnee announced the award of the engineering, procurement, and construction (EPC) contract, to SGC-eTEC to expand the Ethylene Cracker Plant at the Saudi Ethylene and Polyethylene Company (SEPC), a Joint Venture of Tasnee Sahara Olefins Company (TSOC), said the company.
The total value of the contract is estimated at $500 million, and the project will be financed through the company›s own resources and other debt facilities. The project is expected to be completed and production to begin in the first half of 2026, with an increase in production of olefins at the ethylene cracker plant by 18%. According to contracts and expected prices, this is expected to contribute positively to the consolidated profits of TASNEE by an average of SAR 200 million per year.
Tasnee CEO, Mr. Mutlaq Al Morished, stated that the Ethylene Cracker Expansion project comes within Tasnee strategy that aims at promoting expansion and growth, its vision of optimizing the stakeholders’ returns, and ensure Tasnee companies generate positive economic return by 2026, and be among the top Saudi petrochemicals companies in terms of return on invested capital.
We remind, Tasnee has signed an Export Credit Insurance (ECI) policy amounted about SAR 500 million with the Saudi Export-Import Bank (EXIM Bank) on 23 March, 2022, said the company. The agreement was signed by HE Eng. Saad A. Alkhalb, CEO of EXIM Bank, and Mr. Mutlaq H. Al-Morished, Tasnee CEO. The agreement aims at providing credit coverage for the exports of Tasnee’s petrochemical products, that contributing to strengthening its presence in the global markets and increasing its market share.