A major acetyls complex in Jubail Industrial City being developed by Saudi International Petrochemical Company (Sipchem) as part of its second phase will begin commercial operations in the second half of this year after three years of construction. The complex consists of an acetic acid plant of a capacity of 460,000 tonnes annually, a vinyl acetate monomer (VAM) plant (330,000 tonnes) and a carbon monoxide plant (345,000).
Sipchem, established in 1999, already produces annually more than 1 million tonnes of methanol and 75,000 tonnes of butanediol.
As part of its Phase 3, Sipchem is developing an integrated olefins derivates complex which will consist of nine plants producing value-added, performance chemicals with a production capacity of 800,000 tonnes per year. The project, expected to cost more than $7 billion, will consist of 20 world-scale plants and employ 3,000 staff once it begins commercial production in 2013.

Aggressive expansion
“The launch of these additional facilities demonstrates the company’s aggressive expansion programme, which aims to make it one of the largest, fully-integrated, petrochemical complexes in the Middle East, owned and operated by the private sector,” a company spokesman said.
“In conducting its activities, Sipchem maintains strict adherence to the highest product quality standard without compromising its commitment to the environment and the safety of its employees and the community.”
The acetyls complex has been granted loans by the Public Investment Fund (SR1.35 billion)($360 million)), the Saudi Industrial Development Fund (SR1.12 billion) and commercial financing facilities (SR1.43 billion).
The cost of the complex is around $4 billion.
International Acetyl Company will produce the acetic acid while International Vinyl Acetate Company will produce VAM. Both companies are jointly owned by Sipchem and Helm Arabia (Germany). Technology has been secured from Eastman Chemicals Company (USA) for the production of acetic acid and from DuPont Company (USA) for the production of VAM.
The carbon monoxide plant, owned by The United Industrial Gases Company (UIGC), is projected to be among the largest facilities of its kind in the world. It will supply primary feedstock for the production of acetic acid.
The CO project is owned jointly by Sipchem and the National Energy Company (Saudi Arabia).
Sipchem awarded Fluor Canada the contract for constructing the acetic acid plant and the vinyl acetate plant and common utilities for the complex.
Lurgi AG, a German Company, and the French Company Air Liquide, were selected for the construction of the carbon monoxide plant.

Phase 3 complex massive
The massive, fully integrated olefins and derivatives complex of Phase 3 will consist of a cracker unit that will produce around 1.3 million tonnes annually of ethylene and propylene. These basic olefins will be used in the production of 800,000 tonnes of polymers such as high density polyethylene (HDPE), low density polyethylene (LDPE), polypropylene (PP), and ethylene vinyl acetate (EVA).
 The project will complete the products integration to further downstream added-value performance products. Sipchem signed the natural gas feedstock allocation letter with Saudi Aramco.
The polyolefins plant will have Worley Parsons, Houston, USA, as the project management contractor. HSBC will be the financial advisor.
 With the launch of the ambitious Phase 3 olefins and derivatives complex, Sipchem aims to be one of the largest private, fully integrated petrochemical complexes in the Middle East.
The butanediol plant of Sipchem’s Phase 1, owned by Gulf Advanced Chemical Company (Gacic), began commercial production in 2005 and uses  technology provided by Huntsman Corporation and Davy Process Technology. UOP provided the technology for the reverse butamer unit.
Gacic is majority owned by Sipchem, in a joint venture with the Public Pension Agency, Gosi, Huntsman Corp, Davy Process Technology, Sabih Tahir Darwish Al Masri, and AS Albabtain & Company.
Sipchem’s first plant, a methanol production facility, started in December 2005. It is operated by International Mehanol Company which is jointly owned by Sipchem (65 per cent of the shareholding) and Japanese Arabian Methanol Company (35 per cent).