Saudi contract for Shaw

has signed a letter of intent with Eastern Petrochemical (SHARQ), for engineering, procurement, construction, and commissioning of a 1.3 million metric tons-per-year ethylene plant. The value of the project was not disclosed.

The plant, which will be located in Al-Jubail, Saudi Arabia, will utilise Shaw Stone & Webster’s ethylene technology. Under the letter of intent, Shaw will immediately begin engineering and procurement activities at the plant, which is expected to be completed in the first quarter of 2008.

Ethylene is an intermediate petroleum product primarily used in the production of other chemicals, particularly plastics, including polyethylene and polypropylene, the world's most widely used plastic.

The new plant will provide ethylene for an ethylene-glycol plant and a polyethylene plant at the same location.