Saudi NatPet mulls PP derivatives projects

16 June 2008 19:36  [Source: ICIS news]

BAHRAIN (ICIS news)--Saudi National Petrochemical Co (NatPet) is actively studying projects downstream of its polypropylene (PP) expansion which is to be commissioned in July, said a senior company source on Monday.

“We have a vision to expand and we should decide by the end of this year,” said Jamal Malaikah, president of NatPet, on the sidelines of the Middle East Petrochemicals 2008 conference.

Investment in the derivatives project is likely to be in the $150m-200m (€98m-130m range), he added.

On the PP/propane dehydrogenation (PDH) project, Malaikh said the company is shooting for a 15 July start.

The unit is complete and waiting for propylene from the PDH plant which had faced some delays, he added.

NatPet had planned to commission the PP and PDH projects in January 2008. ICIS news had earlier reported that the completion was rescheduled due to construction and equipment installation delays.

Part of the PP from the new plant would be supplied to Sabic and Noble Resources under an offtake agreement, said Malaikh. Nobel would sell the material in Asia while Sabic would sell it globally, he added.

Saudi Arabia’s Alujain Corp and Xenel Group and Noble are the main investors in NatPet.

The Middle East Petrochemicals 2008 conference, organized by MEED, concludes on Tuesday.

($1=€0.65)

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By: Malini Hariharan
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