Alujain Corporation - Yanbu Polypropylene Plant Expansion
Alujain Corporation is undertaking the expansion of a propylene plant in Yanbu Industrial City, Al Madinah al Munawwarah province, Saudi Arabia.
The project will have an annual production capacity of over 600,000 tons of polypropylene and approximately 25,000 tons of marketable hydrogen. The project will feature a grid connecting the subsidiary company (National Petrochemical Industrial Company) NATPET's two processing plants to the propylene and polypropylene production units. This integration aims to boost reliability, efficiency, and economies of scale for both companies.
The US$2,398 million project includes the following:
1. Construction of propane gas processing plant (propylene complex)
2. Construction of propane dehydrogenation (PDH) plant with an annual capacity of 600,000 tons
3. Construction of a polypropylene (PP) plant with an annual capacity of 500,000 tons
4. Construction of PP specialty materials complex
5. Construction of salable hydrogen complex (25,000 tons per year)
6. Construction of Utilities & Offsite (UTOS)
Second Section
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09 February 2026
SGC E&C Company has been appointed as the main contractor on the project.
14 October 2025
Ali Al-Abdullah Al-Tamimi Sons General Contracting Co. Ltd is appointed as the civil subcontractor, and the early civil works have commenced on the project. The main contract bids are under evaluation, and the project is expected to be operational by the first half of 2029.
01 October 2025
The main contract bids have been submitted and currently under evaluation.
20 August 2025
The main contract bids are expected to be submitted by the end of August 2025.
19 June 2025
The main contract tender was issued in March 2025 with a bid submission timeline of July 2025. The following prequalified companies are participating in the project: Sinopec, Larsen & Toubro and Samsung.
04 February 2025
The FEED works have been completed on the project and the main contract tender is expected to be issued by March 2025.
05 April 2024
FEED works are still ongoing on the project
27 September 2023
Samsung Engineering is working as the front-end engineering design (FEED) consultant with a contract value of US$19.4 million and is expected to be completed by May 2024. The client is expecting to issue an EPC contract by mid-2024.
17 May 2023
Alujain Corporation has selected the C3 CATOFIN propane dehydrogenation (PDH) technology of Lummus Technology for the project. (Source: MEED)
13 April 2023
The client is planning faster progress on the project. (Source: MEED)
06 March 2023
FEED works are ongoing on the project.
11 November 2022
The client has received feedstock allocation approval from the Ministry of Energy for the development of the plant. The FEED works are ongoing for the main units and pre-qualification for the EPC contractor companies and the technology selection for the main production units is done. We are working on identifying the FEED consultant and shall update as soon as possible. The project is expected to complete by first half of 2026.