Sharq to supply PE from new plants by late '09 or early '10

15 July 2009 12:31  [Source: ICIS news]

SINGAPORE (ICIS news)--Eastern Petrochemical Co (Sharq) plans to supply high density polyethylene (HDPE) and linear low density PE (LLDPE) from its new plants at Al-Jubail, Saudi Arabia, by the end of 2009 or early 2010, a source close to the company said on Wednesday.

"The two plants, each with a capacity of 400,000 tonnes/year, will start production in the fourth quarter of this year but material will be available in the market only by the end of 2009 or early 2010," the source said.

Company officials were not available for comment.

The firm's 1.3m tonne/year ethane cracker, which would provide the feedstock to the PE plants, was expected to come on stream at the end of 2009 or in early 2010, the source said.

It had been scheduled to start up in the second half of this year, the source added, without giving any reasons for the delay.

"Until the new cracker starts up, the PE plants will source ethylene feedstock from other existing crackers in Al-Jubail," the source said.

Sharq currently operates two LLDPE units at the same site with a total capacity of 750,000 tonnes/year.

Sharq is a 50:50 joint venture between SABIC and Saudi Petrochemical Development Corp (SPDC), which is a Japanese consortium led by the Mitsubishi Group.

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By: Prema Viswanathan
+65 6780 4359

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