SABIC’s MEG ops stable but lack of Europe spot

16 May 2008 12:13  [Source: ICIS news]

LONDON (ICIS news)--SABIC’s monoethylene glycol (MEG) operations in Al-Jubail, Saudi Arabia, were at a stable level with the oxygen allocation lifted but spot supply to Europe may not be possible until the third quarter or later, said a company source on Friday.

“Operations are more stable now but we are still very tight. We might not be active in the Europe spot market until quarter three or even closer to year-end,” said the source.

 

“We already made commitments in early 2008 to pre-market material from our new line due up later this year so this has further reduced our stock levels,” he added.

 

Saudi Basic Industries Corp’s (SABIC) dramatic production issues at the site had had a major impact on global MEG pricing starting from last August sending values soaring.

 

Wholly owned SABIC subsidiary Jubail United Petrochemical Co operates two MEG units in Al-Jubail each with a nameplate capacity of 750,000 tonnes/year.

 

SABIC also owns three other MEG units at the same site in a joint venture with a Japanese consortium led by Mitsubishi Chemical and Mitsubishi Corp.

 

The first two units at joint venture Sharq have a nameplate capacity of 450,000 tonnes/year each and the No 3 unit can produce 500,000 tonnes/year of MEG.

 

For more on MEG visit ICIS chemical intelligence

For more on chemicals visit ICIS connect

By: Edward Cox
+44 20 8652 3214

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