Business

EEI gets P11 B deal in KSA

EEI gets P11 B deal in KSA

Al Rushaid Construction Co. Ltd. (ARCC), the joint venture firm between EEI Corp. and Al Rushaid Petroleum Investment Company (ARPIC), has secured a P11-billion deal to build a Propane Dehydrogenation (PDH) Plant in Saudi Arabia.

In a disclosure to the Philippine Stock Exchange, EEI said ARCC signed a contract for the construction of Advance Polyolefins Industry Company’s (APOC) PDH Plant, as well as its utilities and off-sites (UTOS) last month.

EEI Corporation

EEI Corp. is an affiliate of the Yuchengco Group of Companies (YGC) while ARPIC is a prestigious holding company in Saudi Arabia with over 50 affiliate local and international companies mainly in the field of oil and gas.

The deal, valued at SAR 800 million (approximately P11 billion), was forged with EPC Company Samsung Saudi Arabia Ltd.

The PDH plant is located in Jubail 2 Industrial City, eastern region of Saudi Arabia. Work started this month and mechanical completion by November 2023 while manpower is estimated to peak at 3,769.

ARCC will carry out the civil, building, steel structure, mechanical, tank, piping, painting, electrical and instrumentation works of the project for a total of 25 months.

PDH Plant is a facility that produces propylene by removing hydrogen from propane while UTOS consist of water and air essential to plant utility production facilities that produce steam, auxiliary facilities, and water treatment facilities. APOC has contracted Lummus Technology of the US for licensing of its proprietary CATOFIN technology for the PDH Plant.

The PDH facility that will be producing propylene will have a nameplate capacity of 843,000 tons per year, feeding two Polypropylene (PP) Plants of 400,000 tons per year each for production of specialty polymers by manufacturers of face mask, automotive, pipes, food packaging and textile industries.

The PP Plant will be constructed by another EPC Contractor, Tecnimont. Propane feedstock will be coming from Aramco under a long-term contract.

APOC is a joint venture of Advanced Global Investment Company (AGIC), a wholly- owned subsidiary of Advanced Petrochemical Company (APC) and SK Gas Petrochemical.

EEI Corp. President and CEO Roberto Jose L. Castillo, said this new deal that ARCC has secured adds to the pipeline of domestic and overseas projects that EEI has won over the past few months despite the pandemic.

This year alone, ARCC has already secured seven projects on top of the aforementioned contract.

EEI also recently secured two contracts; one with Cebu Landmasters, Inc. to build Masters Tower Cebu, a 40-storey mixed-used building within the Cebu Business Park and another with SM Development Corporation, to build Sands Residences, a 52-storey tower in Malate, Manila.

“EEI Corp. maintains a substantial backlog of projects that is sufficient to sustain the business in the next three to five years. But what’s more important is that we are well- positioned to win more contracts as we continue to bid for mega infrastructure projects here and abroad,” Castillo said.