Saudi Kayan to start up 650,000t/yr EG unit in September-October

22 June 2010 13:30  [Source: ICIS news]

A PolyOne plantSINGAPORE (ICIS news)--Saudi Kayan Petrochemical expects to start up its new 650,000 tonne/year ethylene glycol (EG) unit in Al Jubail, Saudi Arabia earlier than expected - in September or October, a source close to the company said on Tuesday.

The schedule was brought forward from the original start-up date at end 2010 to 2011 due to a smooth construction process, the source said.

The plant’s nameplate capacity comprises of 90% monoethylene glycol (MEG), 9% diethylene glycol (DEG) and 1% triethylene glycol (TEG), he added.

The company plans to launch a new 100,000 tonne/year ethylene oxide (EO) unit from end 2012 to 2013, after which EG output at the new plant would be reduced to around 550,000 tonnes/year, he said.

“Most of the EG from the new plant would target the China market because no other market consumes such high quantities,” a regional market source said.

The new capacity would exert more downward pressure on Asia MEG prices, given the already oversupplied market, a Chinese MEG producer said.

Last week, Sinopec Zhenhai Refining & Chemical Co (ZRCC) had successfully restarted its new 650,000 tonne/year MEG plant,  the second new MEG line started up in 2010 after Sinopec Tianjin Petrochemical, the joint venture between Sinopec and Saudi Basic Industries Corp (SABIC), launched its 320,000 tonne/year MEG unit in May.

SABIC is the main shareholder in Saudi Kayan with a 35% stake, while Al-Kayan Petrochemical Company holds a 20% share and the rest is publicly traded on the Saudi Arabian stock exchange.

For more on EG and MEG visit ICIS chemical intelligence
For more on Sinopec and SABIC visit ICIS company intelligence
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