Nama pushes epoxy plans

01 February 2006

The local Arabian Industrial Development Company (Nama) is preparing to double epoxy production at its Jubail Chemical Industries Company (Jana) subsidiary. Detailed engineering work is nearing completion and prequalification for the main construction package is expected to start soon. The project involves increasing epoxy production from the plant by 30,000 tonnes a year (t/y) to 60,000 t/y by the end of next year. Epichlorohydrin (ECH) feedstock will be supplied by Nama subsidiary Hassad Petrochemical Company, which is developing a 250,000-t/y chlorine, caustic soda, hydrogen chloride, calcium chloride and ECH plant in Jubail. Diphenolic acid (DPA) feedstock will be either sourced locally or imported. Engineering has been carried out in-house with the assistance of Italy's Saipem.

The plant's offtake will be sold through a combination of spot and long-term contracts. An agreement has been reached with the US' Huntsman Corporation for marketing of some of the epoxy. Nama is also in talks with three international consultants for the contract to conduct a study on increasing Jana's epoxy production to 120,000 t/y by 2010. If built, Jana's total epoxy production would account for about 20 per cent of the world total (MEED 21:1:05).

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