Jubail Chevron Phillips to export Saudi propylene

31 August 2007 05:43  [Source: ICIS news]

By Gina Myung

SINGAPORE (ICIS news)--Jubail Chevron Phillips, a US-Saudi Arabian joint venture company, plans to export propylene from a new modified pentane cracker when it starts up together with a new styrene monomer (SM) plant by end-2007 or early 2008, a source close to the company said on Friday.

US energy major Chevron Phillips Chemical (CPChem) will be marketing the propylene exports which would total 120,000 tonnes a year, he added.

The plant at Jubail, Saudi Arabia, which uses n-pentane as feedstock, has a propylene capacity of 140,000-150,000 tonnes/year and about 25,000-35,000 tonnes/year will be set aside for domestic sales.

A 10,000-tonne fully refrigerated storage tank was also built at the site.

Talks were currently ongoing for about 10,000 tonnes of propylene to be shipped into Asia each month, starting from as early as end of this year, the source said.

However, this quantity could be fully absorbed in Saudi Arabia when the producer expands its downstream capacities in three to four years, he added.

CP Chem and its partner Saudi Industrial Investment Group (SIIG) were discussing building a new cracker, but they have not reached a final investment decision for the third phase yet, the source said.

At the new pentane cracker, ethylene will be used as feedstock for the joint venture’s new 777,000 tonnes/year styrene monomer (SM) unit, the source said.

Some quantities of styrene produced from this new unit will be set aside for its polystyrene (PS) plant in China, while some will be sold on contract basis, he added.

CPChem and SIIG has another joint venture Saudi Chevron Phillips which produces benzene and operates a 280,000 tonne/year cyclohexane unit.

By: Gina Myung
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly