Oil field and petrochemicals services company 'Technip-Italy' has won a contract to build an ethylene and propylene plant for Saudi Basic Industries Corp. (SABIC) in the Red Sea industrial zone of Yanbu. SABIC said it signed last Wednesday a letter of intent with Technip- Italy for the engineering, procurement and construction of the plant which will be able to produce 1.3 million tons of ethylene and 400,000 tons a year of propylene. Reuters quoted Officials as saying the Yanbu plant will use mixed ethane and propane feedstock. A SABIC statement gave no value for the deal, the core part of its YANSAB project, which aims to add nearly 4 million tons of petrochemical production a year. But industry reports have estimated the value at around $700 million to $800 million. --MORE 1103 Local Time 0803 GMT
