Petrochemical Projects Development Company (PPDC), mandated to serve as an incubator evaluating petrochemical industrial activities and selecting those with greatest potential for early implementation, is moving ahead with the execution of an acrylonitrile project in Saudi Arabia.
Development Group International (DGI), being in the project development business, formulated PPDC in 2005 with a group of well-known Saudi investors including the Al Azizia Commercial Investment Company majority stakeholder Prince Alwaleed bin Talal, Abduallah Mohammad Al-Romaizan, Abduallah Saad Al-Rashed and Maan Abdul-Wahed Al-Saneh.
PPDC identifies technology, EPC, feedstock supply, long-term off-take, O&M and utility providers with agreements negotiated as required capital is appropriated. Projects are then prepared for IPO leveraging founders’ investment.
Of the several potential petrochemical projects DGI had studied over the prior several years, PPDC chose acrylonitrile as the first of many to be implemented. This project constitutes an industrial petrochemical complex for commercial production of acrylonitrile from propylene, ammonia and oxygen, by applying proprietary technology licensed from Western technology holders for this process, said a spokesman for DGI.
Propylene for the project will be supplied by the Houston-based Vinmar International, an off-take contractor of regional propylene producers. Vinmar, engaged in chemicals and plastics worldwide, signed an MoU with PPDC in November 2005 with the parties jointly selecting an independent consultant to perform a bankable market study necessary for project implementation.
With this study under way, it is expected that the parties will form a joint venture, executing key agreements for feedstock supply, technology licensing, EPC contract, long-term off-take, O&M, utilities supply and land site allotment lease, said the spokesman.
Upon capital appropriation, the project will be ready to let engineering and construction contracts some time in the middle of 2006, the spokesman said.
