11 December 2009 06:55 [Source: ICIS news]
DUBAI (ICIS news)--Saudi Basic Industries Corp (SABIC) and ExxonMobil are awaiting approval from their respective management boards for a planned 400,000 tonne/year elastomers and carbon black joint-venture project in Saudi Arabia, Mohamed Al-Mady, SABIC CEO, said late on Thursday.
A decision on the project would be taken after it comes before the two boards, he added.
"We are working with contractors for detailed engineering and for capital cost estimation. However, no final decision can be taken yet, as it has not come before the two management boards," Al-Mady said on the sidelines of the 4th Gulf Petrochemicals and Chemicals Association (GPCA) forum.
The cost of the project was being evaluated at the moment, he said.
"First it has to be approved by the two boards, and then financing can be explored. It will take some time, we have to analyse the feasibility," he said.
The project will be spread between the Kemya and Yanpet complexes, the existing joint ventures between SABIC and ExxonMobil, located at Al Jubail and Yanbu respectively.
It was premature to speak of a start-up schedule, Al-Mady added.
Media reports had estimated the total investment value at $5bn (€3.4bn) with start-up dates between 2013 and 2014.
The project will include facilities to make rubber and thermoplastic specialty polymers such as ethylene-propylene-diene-monomer (EPDM), thermoplastic olefins, butyl rubber, styrene butadiene rubber (SBR) and polybutadiene rubber (PBR), as well as carbon black.
The GPCA forum ended on Thursday.($1 = €0.68) For more on elastomers visit ICIS chemical intelligence
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