Leading Saudi entities Sahara International Petrochemical Company (Sipchem) and National Industrialization Company (Tasnee) have awarded an engineering, procurement, and construction (EPC) contract worth SAR1.9 billion ($500 million) to Korean group SGC-eTEC for expansion of its ethylene cracker plant in the kingdom, both companies said in separate statements to Tadawul.
Headquartered in Seoul, SGC eTEC E&C Company is a major provider of engineering, procurement, construction, and operation and maintenance services.
The contract aims to boost production at the ethylene cracker plant, a joint venture affiliated to Tasnee Sahara Olefins Company (TSOC), which is 32.55% owned by Sipchem and 60% by Tasnee.
The expansion project will likely to be completed in the first half of 2026, with operations leading to an increase in Olefins production by an estimated 18%.
The contract will likely boost Sipchem’s consolidated financial results, the statement said.
According to Tasnee, its consolidated earnings will receive SAR200 million on average per annum from the project, and the relevant financial impact will start to appear in 2026 financial statements.
The project, which will include no related parties, will be 30% financed from internal resources and 70% by other facilities, it added.-TradeArabia News Service
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