PetroRabigh cuts HDPE, LLDPE exports as plants run at low rates

17 September 2010 08:57  [Source: ICIS news]

PetroRabigh cuts PE exports from its Rabigh plantSINGAPORE (ICIS)--Rabigh Refining and Petrochemical Co (PetroRabigh) will offer limited export cargoes of polyethylene (PE) for October as it is still ramping up production at plants after an outage, sources close to the company said on Friday.

Volume offers for September cargoes had to be reduced as the company’s 300,000 tonne/year high density PE (HPDE) plant and its 600,000 tonne/year linear low density PE (LLDPE) plant were shut for several weeks, sources said.

“The PE inventories are very low. It will take some time for company to ramp up operating rates to a reasonable level,” one of the sources said.

Operating rates at the plants located in Rabigh, Saudi Arabia are currently low, the source said.

Company officials were not available for comment.

“The LLDPE plant has been experiencing teething problems ever since it started up last year, and one can only hope it will begin to operate normally soon,” said a second source.

The company restarted its 600,000 tonne/year polypropylene (PP) plant on 27 August, following a three-week outage caused by shortage of propylene.

PetroRabigh also has a 1.3m tonne/year ethane cracker and a 700,000 tonne/year monoethylene glycol (MEG) plant at the site, which were operating normally, sources said.

The company is a joint venture between state-owned Saudi Aramco and Japan’s Sumitomo Chemical Co.

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By: Prema Viswanathan
+65 6780 4359



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