Saudi Basic Industries Corporation (Sabic) has announced plans to construct a new Ethylene Glycol (EG) plant at Jubail United Petrochemical Company (UNITED). The facility will have an annual capacity of 625,000 metric tons (mt).
The plant, Sabic's seventh EG facility, is expected to go on stream by the end of 2005, and will be the second EG plant at UNITED, adding to the existing 575,000 mt per year (mtpy) EG plant that is currently under construction.
The plant will use new technology from the US based Scientific Design Company. Sabic and Sud-Chemie manage Scientific Design through a 50:50 joint venture. Ethylene and oxygen feedstock for the new plant will be provided by other Sabic companies – oxygen from its GAS affiliate and Ethylene from UNITED and Petrokemya, the Arabian Petrochemical Company.
The new plant will boost Sabic's position as a leading global producer of EG, and help enhance the company's competitive reach both worldwide and in the Middle East. By 2006, Sabic's total EG production will reach 3.5 million mtpy, meeting over 20 percent of global demand. Some 1.5 million mt will be produced at the Eastern Petrochemical Company, Al-Jubail (SHARQ), 1.2 million mt at UNITED and 800,000 mt at the Saudi-Yanbu Petrochemical Company (YANPET).
Ethylene Glycol is the primary feedstock for polyester manufacturing. It is used in anti-freeze, marine engines, x-rays and luggage. The contract for construction of the new plant has not yet been awarded. The successful supplier will be announced later this year. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
