Sabic to join Kayan project

10 February 2006

Saudi Basic Industries Corporation (Sabic) has signed a memorandum of understanding (MoU) with the local Kayan Petrochemicals Company to partner it on its planned Jubail olefins complex.

Under the terms of the MoU, Sabic will review all works, studies, agreements and update the feasibility study over the next two months. The two parties will enter into a final agreement if they agree on the results.

The main shareholder in Kayan is the local Project Management & Development Company (PMD), which is in talks with three members of the ethylene club for the contract to build the complex's 1.35 million-tonne-a-year (t/y) ethane/butane cracker (MEED 18:11:05).

PMD recently signed an agreement with Oxiteno, a subsidiary of Brazil's Ultrapar, for the licensing of its proprietary ethanolamine and ethoxylate technology. The proposed olefins complex will be one of the largest in the kingdom. In addition to the cracker, it will also comprise a 250,000-t/y low-density polyethylene (LDPE) plant, two polypropylene (PP) units with total capacity of 600,000 t/y, a 700,000-t/y ethylene oxide unit - the world's largest - methylamine and choline chloride units, and capacity of 100,000 t/y of ethanolamines and 40,000 t/y of ethoxylates (MEED 26:8:05).

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