Robert Brelsford
Downstream Technology Editor
Iran's state-owned Ahdaf Management Services Development Co. PLC has let contracts to Hyundai Motor Group of South Korea subsidiaries Hyundai Engineering Co. Ltd. and Hyundai Engineering & Construction Co. Ltd. to jointly build the second phase of Kangan Petro Refining Co.'s (KPRC) South Pars 12 petrochemical project in Pars Special Economic Energy Zone, Tonbak, Boushehr Province, about 1,100 km south of Tehran.
Under the contracts signed in Tehran on Mar. 12, Hyundai Engineering and Hyundai E&C will provide engineering, procurement, construction, and financing services for a proposed grassroots petrochemical complex designed to process gas feedstock from the planned 12th-phase development of Iran's giant South Pars natural gas field in the Persian Gulf, Hyundai said.
Alongside an ethane cracker capable of producing 1 million tonnes/year of ethylene, KPRC's South Pars 12 petrochemical complex also will produce 350,000 tpy of high-density polyethylene, 350,000 tpy of linear low-density polyethylene, and 500,000 tpy of monoethylene glycol, the service provider said.
These latest contracts follow preliminary agreements between the parties for work on the project executed in 2016, as well as an earlier letter of intent from Export-Import Bank of Korea and Korea Trade-Investment Promotion Agency to provide financial support for the proposed development, Hyundai said.
With a combined value of $3.3 billion, the KPRC project contracts have a duration period of 48 months from the start of construction, according to regulatory filings with the Korea Exchange.
Alongside Ahdaf with 99.96%, shareholders of KPRC include Ofogh Zarrin Mohaseb Co. Ltd. 0.01%, Saba Karoon Oil & Gas Development Co. Ltd. 0.01%, Saba Jam-E-Kangan Industrial Complex Ltd. 0.01%, and Navid Saba-E-Jam Oil & Gas Development Co. Ltd. 0.01%.
A two-phase development, the South Pars 12 project aims to deliver 3 bcfd of raw gas from South Pars reservoir to Phase 1 of the project, which includes a recovery and fractionation plant for ethane, propane, butane, and pentanes, according to KPRC's web site.
While propane, butane, and pentanes from Phase 1 will ship directly to market, ethane supplies will be used as feedstock for the Phase 2 cracker.
