UpdateSABIC, Sinopec start commercial ops at 3m t/yr Tianjin JV

11 May 2010 10:02  [Source: ICIS news]

(adds comments from SABIC chairman in fourth paragraph and comments from an analyst in seventh and eighth paragraphs)

SINGAPORE (ICIS news)--SABIC and Sinopec have started commercial production at their joint 3m tonne/year petrochemical complex at Tianjin, China, the Saudi Arabian petrochemical giant said on Tuesday.

Pre-production operations at the complex began in January 2010, SABIC said in a statement.

The project, which includes a 1m tonne/year cracker, is a 50:50 joint venture between the companies.

The joint venture strengthens SABIC’s presence in the strategic Asian market, said SABIC chairman Saud bin Abdullah bin Thenayan Al Saud, in a statement.

The project would also “enhance the competitiveness of both companies in the global market and create the potential for more such projects”, SABIC said.

The Tianjin complex also houses a 40,000/360,000 tonne/year ethylene oxide/ethylene glycol (EO/EG) unit, a 300,000 tonne/year linear low density polyethylene (LLDPE) plant, a 300,000 tonne/year high density polyethylene (HDPE) facility and a 450,000 tonne/year polypropylene (PP) plant.

It also has a 600,000 tonne/year cracked gasoline hydrogenation unit, a 200,000 tonne/year butadiene extraction facility, a 350,000 tonne/year phenol/acetone unit and a 120,000/50,000 tonne/year methyl tertiary butyl ether (MTBE)/butene-1 plant.

Production from the facility was meant to cater to China’s domestic requirement, said Wang Hua, an analyst from Dalian-based brokerage firm Bohai Futures Co.

“This also indicates that market competition will be more fierce in the future, especially when demand is not very strong,” said Wang.

With additional reporting by Judith Wang

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By: Pearl Bantillo
+65 6780 4359



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