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SABIC awards turnkey contract for ethylene gylcol plant to Toyo
Engineering Company
Posted: 04 January 2004
Saudi Basic Industries Corporation (SABIC) has awarded a Lump Sum
Turnkey Contract for the Engineering, Procurement and Construction
of an Ethylene Glycol (EG) Plant to Toyo Engineering Company of
Japan. The plant will be constructed at Jubail United Petrochemical
Company (UNITED) in Saudi Arabia. The plant will have capacity of
630,000 mt/y and is expected to go on stream by the second quarter
of 2006. This is in addition to the existing 575,000 mt/y EG plant
that is currently under construction at UNITED.
The new plant will boost SABIC’s position as a leading global
producer of EG, and help enhance the company’s competitive
position both worldwide and in the Middle East. By 2006, SABIC’s
total EG production is expected to reach 3.5 million mt/y –
meeting over 20% of global demand. Out of this, 1.5 million mt will
be produced at SHARQ (Eastern Petrochemical Company, Al-Jubail);
1.20 million mt at UNITED (Jubail United Petrochemical Company);
800,000 mt at YANPET (Saudi-Yanbu Petorchemical Company, Yanbu).
Ethylene Glycol is the primary feedstock for polyester manufacturing.
It is used in anti-freeze, marine engines, x-rays and luggage.
About SABIC
The Middle East’s largest petrochemicals company, SABIC, is
based in Riyadh, Saudi Arabia.
It was founded in 1976, when the Saudi Arabian Government decided
to use hydrocarbon gases released in the production of oil as raw
material for the production of chemicals, polymers and fertilizers.
The Saudi Arabian Government owns 70% of SABIC shares, with the
remaining 30% held by private investors in Saudi Arabia and other
countries of the Gulf Cooperation Council (GCC).
SABIC’s business activities have been restructured and a new
management model became effective on 1 September 2002. There are
now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates;
Polyolefins; PVC & Polyester; Fertilizers and Metals. Supporting
all these functions is a corporate core consisting Human Resources;
Corporate Finance; Corporate Control and Research & Technology.
A Shared Services Organization will become operational in 2003.
SABIC has two large industrial sites in Saudi Arabia – Al-Jubail
and Yanbu – with sixteen world-scale production complexes.
Some of these production complexes are operated with multi-national
partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi
Chemicals. In addition, SABIC has interests in three production
complexes in Bahrain. Over the last 16 years, SABIC’s overall
production capacity has increased considerably. In 2002 it amounted
to 40.6 million metric tons.
SABIC EuroPetrochemicals owns two petrochemical production sites
in Geleen (Netherlands) and Gelsenkirchen (Germany) for the production,
marketing and sales of polypropylenes, polyethylenes and hydrocarbons.
They annually sell about 2.6 million tonnes of polymers, mainly
in Europe. About 2,300 people are employed at SABIC EuroPetrochemicals.
SABIC employs over 16,000 people worldwide, most of whom are based
in Saudi Arabia. In 2002 SABIC posted sales of approximately SR34bn
(US$9.06bn) and a net profit of approximately SR2.84bn (US$758.4m)
For more information see www.sabic.com.
Posted by Richard Price,
Editor Pipeline Magazine
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