SABIC, ExxonMobil plan Saudi elastomers plant

18 November 2008 16:08  [Source: ICIS news]

LONDON (ICIS news)--SABIC and US oil and petrochemical major ExxonMobil have signed an agreement for a new multi-billion dollar elastomers project at their 50:50 joint ventures Kemya and Yanpet, the Saudi Arabian petrochemicals major said on Tuesday.

Saudi Basic Industries Corp (SABIC) said the two firms were progressing with detailed studies for the project, which would establish a domestic supply of more than 400,000 tonnes/year of carbon black, rubber and thermoplastic specialty polymers to serve emerging local and international markets.

The project would also include a vocational training institute and a product application development and support centre, it added.

The plant would utilise additional feedstock allocated by Saudi Arabia’s Petroleum and Mineral Resources Ministry and additional feedstock from other local sources that would be processed at Yanbu Petrochemical Co (Yanpet) on the Red Sea coast and Al-Jubail Petrochemical Co (Kemya) on the Gulf coast.

The final decision to implement the project, which would require board of director approval for both JVs, was subject to the completion of more detailed studies of economic feasibility and the completion of all other statutory procedures, said SABIC.

A company spokesman said no further details on timings on the project had been released at this stage.

For more on SABIC and ExxonMobil visit ICIS company intelligence
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By: Hilde Ovrebekk
+44 20 8652 3214

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