Saudi Aramco plans more feedstock/petchem projects
29 September 2005 12:44 [Source: ICIS news]
LONDON (ICIS news)--Saudi Aramco is planning a range of petrochemical projects in Saudi Arabia in conjunction with the government’s plan for vertical integration in the sector, Khalid Al-Falih, senior vice president of gas operations for oil company, said on Thursday.
With ethane capacity planned to increase to 1,100 mmscfd (million standard cubic feet/day) in 2010 from 550 mmscfd and propylene and natural gas liquids capacity to increase to 960m bbl/day in 2010 from 340m bbl/day today, the company should be well prepared for extensive plans in the petrochemicals sector, he said.
Refining capacity, some of which will be used as petrochemical feedstock, will rise to 2.9m bbl/day from 2m bbl/day. Petrochemical feedstock cost will be very low as it is linked to crude oil production, he said.
Saudi Aramco in August signed an agreement with Japan's Sumitomo to build a 2.4m tonne/year petrochemical derivatives complex, Al-Falih said. This "will be the most integrated petrochemical site in the world", he claimed.
But, that’s only the beginning, Al-Falih added. "We are back in discussion with several players on further projects."
One potential project is a $6bn (Euro5bn), 3.5m tonne/year Ras Tanura olefins and aromatics complex, which is currently in the marketing phase.
Another potential investment includes an integrated refining and petrochemicals project in Yanbu, said Al-Falih, adding that further details will emerge in 2006.
These projects would be supported by investments in two export refineries on the east and west coast of the country.
This will enable the kingdom to branch into markets even further downstream, and into downstream manufacturing of products all the way down to finished consumer goods.
Products currently not produced in Saudi Arabia but on the schedule for future projects include acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN), polycarbonate (PC), phenolic resins, epoxy resins, acrylic fibres, acrylonitrile (ACN) and carbon fibre.
By: Hilde Ovrebekk
+44 20 8652 3214
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