Saudi Kayan Petrochemical to start up new EG unit next week

05 August 2010 12:00  [Source: ICIS news]

SINGAPORE (ICIS)--Saudi Kayan Petrochemical Co expects to start up its new ethylene glycol (EG) unit at Al-Jubail, Saudi Arabia, early next week, ahead of its original start-up schedule for September or October, a source close to the company said on Thursday.

The start-up date of the EG unit was brought forward, as its upstream 1.35m tonne/year cracker had already achieved on-spec production following its start-up on 26 July, the source said.

The new plant will have a nameplate EG capacity of 650,000 tonnes/year and its output would comprise of 90% monoethylene glycol (MEG), 9% diethylene glycol (DEG) and 1% triethylene glycol (TEG), he added.

The new capacity from the plant’s start-up was expected to exert downward pressure on domestic MEG prices, as a majority of Saudi Kayan’s output was targeted at the Chinese market, said a major producer based in China.

Saudi Kayan Petrochemical Co is a public stock company, with SABIC owning a 35% stake, Al-Kayan Petrochemical Co holding 20% and the remaining 45% publicly traded on the Saudi Stock Exchange (Tadawul).

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By: Becky Zhang
+65 6780 4359



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