Saudi Basic Industries Corp. (Sabic) and 50-50 partner Mobil Corp. last week unveiled plans for a big expansion of their Yanbu petrochemical complex on Saudi Arabia's Red Sea coast.
The $2 billion project will more than double capacity of the partnership's Saudi Yanbu Petrochemical Co. (Yanpet). Construction is to begin in 1997, with start-up set for early 2000.
Construction will include an 800,000 metric ton/year ethylene cracker, 535,000 metric ton/year polyethylene plant, 410,000 metric ton/year ethylene glycol plant, and 260,000 metric ton/ year polypropylene unit.
The new cracker will use propane and light naphtha as feedstock to produce ethylene. The process will produce a significant volume of propylene, which will be converted to polypropylene in an addition to the venture's product slate.
Ibrahim A. Ibn Salamah, Sabic vice-chairman and managing director, said the expansion project will make Yanpet one of the largest petrochemicals complexes in the world, with capacity to produce more than 1.6 million metric tons/year of ethylene and 2 million metric tons/year of derivative products.
Yanbu's present cracker uses ethane feedstock to produce more than 800 metric tons/year of ethylene. Other units in the complex produce a total 350,000 metric tons/year of ethylene glycol and 610,000 metric tons/year of polyethylene.
Mobil Chairman and Chief Executive Officer Lucio A. Noto called the present Yanpet operation "an outstanding success." He predicted the expansion program will make Yanpet the world's lowest cost ethylene producer.
Mobil participates in the complex through Mobil Yanbu Petrochemical Co. Inc.
Sabic and Mobil formed their joint venture in 1980 and began operations in 1985.
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