Riyadh starts petrochemicals production at Yanbu

16 July 2009
Saudi Arabia's Yanbu National Petrochemical Company (Yansab) has started production at its new petrochemicals complex at Yanbu Industrial City.

In a 15 July statement, the company said production at the plant has started, but did not specify a date.

Sources close to the scheme say that the because of the complexity of the scheme it is likely to be August or September before the plants reach their full production capacity.

At full capacity, the complex will produce 1.3 million tonnes a year (t/y) of ethylene; 400,000 t/y of propylene; 800,000 t/y of low and high-density polyethylene; 400,000 t/y of polypropylene; 770,000 t/y of ethylene glycol; 250,000 t/y of benzene, toluene, and xylenes; and 100,000 t/y of butane, alongside 25,000 of MTBE, used in gasoline blending.

A series of polypropylene plants in the region are due to start production in the second half of 2009, which is likely to keep petrochemicals prices and profits low, according to a report from Sico, a Bahraini-based investment bank (MEED 14:7:09).

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