CPChem, SIIG to Expand Saudi Aromatics Plant

15 April 2002 00:00  [Source: ICB Americas]

As part of their strategy to follow the feedstocks, Chevron Phillips Chemical Company LLC and Saudi Industrial Investment Group (SIIG) are planning a $1 billion expansion to their aromatics complex in Al Jubail, Saudi Arabia. Start-up for the new facilities is slated for 2006.

The new production will include benzene, ethylbenzene, styrene and propylene. CPChem says the new facility will produce 600,000 to 700,000 tons of styrene per year. The new plant will also produce a significant amount of ethylbenzene. The company would not reveal capacities for benzene and propylene.

The Al Jubail facility, which came on line in 2000, currently produces benzene, cyclohexane and gasoline. The plant uses CPChem's Aromax technology to manufacture the benzene. In March, the two companies announced a 60,000-metric-ton-per-year expansion of their cyclohexane production. That expansion is expected on line early in 2003.

"Our strategy has been to build world scale facilities with access to advantaged feedstocks and large, growing markets," says Mike Parker, CPChem's senior vice president of aromatics and styrenics. "This project clearly meets those objectives."

Late last year, CPChem elected to continue to keep its benzene and cyclohexane capacity in Guayama, Puerto Rico, off line. The company had idled all production in Puerto Rico in March 2001. CPChem expects to eventually restart the Guayama facility's paraxylene and ortho-xylene units. Originally, the company intended to renew production at those units early this year.

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