A Memorandum of Understanding has been signed today, by and between the Saudi Basic Industries Corporation (SABIC) and OSOS Petrochemicals (currently under formation). Subject to this MoU, SABIC will enter as a partner in the OSOS Petrochemicals project at Yanbu industrial city. According to this agreement, SABIC will complete in no more than 2 months, the exploration and review all works, studies and agreements prior to updating the respective economic feasibility study. A final agreement will then be signed, should the two parties agree on the study.
The total value of this project is estimated at US$ 1 billion. SABIC will hold 35 percent in the joint venture. Products will include the following: Polybutylene terephthalate (PBT), 60,000 tons; Butanediol (BDO), 50,000 tons; Tetrahydrofuran (THF), 3,500 tons; Malic anhydride acid (MAN), 85,000 tons.
PBT is used in various applications including electronic chips, the automotive industry and computer and communications equipment. SABIC’s share of the total global PBT production will be 15 percent.
BDO is an intermediate product used in Polyurethane and PBT. THF is used in Polytetramethylene Ether Glycol (PTMEG), drug compounds and is also used as a solvent. MAN will be used within the plant.
