Sabic affiliate Yanbu National Petrochemical Company (Yansab) has signed a Letter of Intent (LOI) with Shaw Stone & Webster Inc for the design, supply and construction of a butene plant with a designed annual capacity of 135,000 tonnes of butene and 250,000 tonnes per year (tpy) of benzene, toluene and xylene mixtures.

Commenting on the development, Mohamed Al-Mady, Sabic vice chairman and CEO, said: “This LOI completes the contractual process for all of Yansab’s plants which are expected to go on-stream by 2008, with an annual capacity exceeding 4 million tonnes.  This includes 1.3 million tpa of ethylene; 400,000 tpa of propylene; 900,000 tpa of polyethylene, 770,000 tpa of ethylene glycol; 500,000 tpa and 400,000 tpa of polypropylene alongside butane, benzene, xylene and toluene mixtures.
“This large annual capacity will further enhance Sabic’s position among the world’s largest petrochemical companies and strengthen its competitive and leading capabilities in the global markets.”
He further pointed out that the complex would utilise Sabic and Sud Chemie-owned (50:50) Scientific Design Ethylene Glycol (EG) technology as well as butene-1 cutting-edge technology developed by Sabic in cooperation with the French Petrol Institute. This is in addition to totally new high-tech facilities for the production of high-density polyethylene (HDPE), comprising the latest state-of-the-art manufacturing process to meet customer tailored requirements. This technology is being introduced for the first time in Sabic plants in parallel with a new technology for the extraction and conversion of pure aromatic compound to benzene.
 Abdulrahman Al-Fageeh, president Yansab, signed the LOI for his company.  Ebrahim Fatemizadeh, president, Energy & Chemical, signed the LOI on behalf of Shaw Stone & Webster Inc.
Sabic owns 55 per cent of Yansab shares. Its partners in its Ibn Rushd affiliate own a further 10 per cent with the remaining 35 per cent being owned by Saudi citizens.