13 August 2010 03:34 [Source: ICIS news]
SINGAPORE (ICIS)--Saudi Kayan Petrochemical Co has achieved on-spec production at its new 650,000 tonne/year ethylene glycol (EG) unit in Al-Jubail, Saudi Arabia in the middle of this week, just a few days after it started up, a source close to the company said on Friday.
“The start-up process [of the EG unit is] going smoothly,” the source said, but declined to provide the current operating rates at the plant, which commenced operations on 8-9 August.
Around 60-70% of the plant’s output would be allocated to Asia, while the rest would go to Europe and ?xml:namespace>
Petrochemical giant Saudi Basic Industries Corp (SABIC), which acts as the trading arm of company, had started arranging shipments for the first batch of new EG products to
“Almost all the new EG products from Kayan will go directly to contract clients, with few cargoes flowing into spot market,” said the first source.
Asia monoethylene glycol (MEG) prices slightly declined on Thursday at to $760-770/tonne CFR (cost and freight) China Main Port (CMP) due to weaker crude values, after staying at 11-week highs of $770-780/tonne CFR CMP for most of the week, according to ICIS data.
Saudi Kayan Petrochemical Co is listed on the Saudi Stock Exchange. SABIC owns 35% of the company while Al-Kayan Petrochemical Co owns a 20% stake.
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