S06 ORME 6 2012 Gas 01_Layout 1 13/09/2012 12:03 Page 30
Gas
Oil Review spoke to Tim Buttkus, director business development Linde Gas Middle East, about the significance of the company’s huge contract to supply all on-site gases to Sadara's major chemical complex in Jubail, Saudi Arabia.
Supplying industrial gases on
another level T
HE LARGE CONTRACT was awarded to Linde Gas Middle East in March this year by Sadara, the joint venture developed by Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow). Buttkus said that the tender to win the contract was very competitive and it was a tough challenge for all the competing firms. “We were pleased that we managed to secure the job. It was very hard and we really tried to pull out all the stops and be very creative in terms of the technical concept required to do the work and also to give a very good deal to Sadara,” noted Buttkus. Under the long-term twenty year contract Linde will supply Sadara with carbon monoxide (CO), hydrogen (H2), and ammonia (NH3) and will also include the construction of a HyCO facility. All the gases will be fed into a chemical complex now being built by Sadara in Jubail Industrial City. Linde's engineering division will design, deliver and construct the new turnkey gas facilities. The production units are scheduled to be ready in 2015 and will be operated by Linde's gas division. Buttkus said that Linde would invest US$380 mn in the project and that it is the gas division’s first successes story in Saudi. It is also Linde's largest on-site petrochemical project in this region and their first in Jubail.
Linde will supply Sadara with carbon monoxide (CO), hydrogen (H2), and ammonia (NH3) and will also include the construction of a HyCO facility “This is why this contract is so significant as we really wanted to get into Saudi Arabia, which is the most exciting oil and gas market in the Middle East,” said Buttkus. The Sadara contract could lead to further growth opportunities in the region, as Buttkus pointed out, “We can use the Sadara contract as a stepping stone.” The market in Saudi Arabia is massive and Jubail provides a unique opportunity for industrial gas operators. Unlike other petrochemical clusters in the world, in Antwerp or Singapore, Jubail is the only cluster where there is not a multi-national gas company present who can supply petrochemical off-takers with a grid. “The situation presents a huge opportunity and we are keen to invest even more in this sector,” stated Buttkus.
Full steam ahead Buttkus explained that the whole process had been a very long ride and that Linde was involved as far back as 2008. He was praiseworthy of the tendering process which was conducted very professionally and the fact that right from the very beginning, both parties and sponsors had decided that an outsourcing model was the route to take. “I like the link and strategic move within Saudi Aramco to focus on their core competencies and I feel this gas supply agreement can be seen as part of it,” added Buttkus.
30 Oil Review Middle East Issue Six 2012
Tim Buttkus
He explained that Linde spent a lot of time making sure the technical solutions that they came up with fitted well within the overall Sadara chemical complex. “The beauty of our proposition is that Linde is capable of supplying the main technology in-house. We also have an in-house ammonia technology that will be used.” Now that the tender has been awarded Linde is busy ramping up its operations in Jubail. Buttkus hopes that “the good collaboration that developed during the tender phase with Sadara will continue into the next phase.” Linde Engineering has started engineering activities already with the procurement of the main equipment underway. But there will be plenty of equipment still to be procured, such as machinery. One of the key tasks that Buttkus is heavily involved in is the setting up of a dedicated local gases unit in Jubail for on-site support. He will be the designated managing director for the entity.