A new project at Arabian Petrochemicals Company (Petrokemya) - called Olefins III - is set to come onstream by November, according to the company.
The new project will consist of an 800,000 tpy flexible feedstock ethylene plant, a 160,000 tpy propylene plant and a 25,000 tpy benzene unit.
Using a basic design and license from Stone & Webster for ethylene and polypropylene and ABB Lummus Global technology for the benzene, construction has been carried out by a group of Saudi contractors.
A new polyethylene plant will come onstream with a capacity of 400,000 tpy, and this is expected to soak up excess ethylene from Olefins III. Until then, Petrokemya will have 400,000 tpy of excess ethylene, most of which will be sent to Asia, Europe and Latin America.
Petrokemya president Khalid Al Rawaf is unfazed by a surplus of ethylene crackers in Asia. "It is more of an intermediate product for us, not really a major product," he said. "Besides, there are markets in Latin America and South Africa.''
Petrokemya has undertaken several major expansion projects over the past decade, including two olefins project.
Olefins I started production in 1985 with a production capacity of 500,000 tpy. Its capacity was then increased to 650,000 tpy in 1998.
Petrokemya's plants include:
* High Impact Polystyrene (HIPS) - capacity 65,000 tpy. Similar production process to GPPS, but an impact modifier is added in the feed preparation stage to give the product impact resistance property;
Petrokemya also provides support services to National Plastic Company (Ibn Hayyan), besides operating the following plants as per an operating agreement between the two companies:
Ibn Hayyan shares its site with Petrokemya, and Petrokemya's manpower provides administrative, financial, technical, operational and security services to Ibn Hayyan as part of a joint operating agreement to optimise operating costs for the two companies.
Petrokemya also receives a share of the 450,000 tpy production of ethylene glycol (EG) at Sharq. Petrokemya supplies the EG plant with ethylene.