GPCA ‘11: Saudi Kayan awards amines logistics contract to Talke

13 December 2011 12:03  [Source: ICIS news]

DUBAI (ICIS)--Saudi Kayan has awarded a site logistics contract for its new ethanolamines and ethoxylates facility at Al-Jubail, Saudi Arabia, to an affiliate of Alfred Talke, Richard Heath, Alfred Talke’s director for Middle East and Asia, said on Tuesday.

S A Talke, Alfred Talke’s joint venture in Saudi Arabia, was last week awarded the contract to provide site logistics and local transportation services for the 140,000 tonne/year plant, he said. Headquartered in Germany, Alfred Talke is a logistics and tank and container transport specialist.

The amines and ethoxylates facility, which is part of Saudi Kayan’s new 5m tonne/year complex, is expected to start up in the first half of next year, Heath said.

Saudi Kayan is a joint venture between SABIC and Al-Kayan Petrochemical.

The Saudi Kayan complex has the capacity to produce 1.48m tonnes/year of ethylene and 700,000 tonnes/year of polyethylene (PE), as well as benzene, phenol, ethylene glycol (EG), choline chloride and dimethyl formamide (DMF).

The project is an example of the strategy of petrochemical producers in the Middle East to diversify into downstream products, as part of efforts to provide manufacturing jobs in the region.

“Winning this contract is strategically incredibly important because it represents the first step from the high volume commodity polymers into the more specialised liquid chemicals portfolio,” said Heath. He declined to reveal financial details of the contract.

While liquid chemicals represents a major part of Alfred Talke’s business in Europe, in the Middle East the focus has been polymers. Investment in downstream chemicals in the Middle East are particularly interesting for Alfred Talke, whose roots are in liquid chemicals, not plastics, said Heath.

Alfred Talke is in discussions with Saudi Kayan regarding the materials handling for additional plants. “The next steps are to move further into other liquids,” said Heath, who was speaking on the sidelines of the 6th Annual GPCA (Gulf Petrochemicals & Chemicals Association) Forum in Dubai.

Alfred Talke already handles a total of 1.5m tonnes/year of PE and polypropylene (PP) for Tasnee in Jubail, Saudi Arabia, 340,000 tonnes/year of PP for Oman Polypropylene in Sohar, Oman, and 450,000 tonnes/year of linear low density polyethylene (LLDPE) for Qatofin in Mesaieed, Qatar, Heath said. Qatofin is a joint venture between Total Petrochemicals, QAPCO and Qatar Petroleum.

Alfred Talke will also provide material handling for a QAPCO 300,000 tonne/year low density polyethylene (LDPE) plant in Mesaieed, Heath said. The QAPCO plant is expected to come on stream next year, he added.

In addition, the company will provide material handling for a major new project in Jubail with a combined PE, PP and polystyrene (PS) capacity of 1.7m tonnes/year. Heath declined to name the client but it is understood to be the Saudi Polymers – a joint venture between Arabian Chevron Phillips Petrochemical and National Petrochemical (Petrochem).

By 2012, Alfred Talke expects to be handling 4.5m tonnes/year of material in the Gulf Cooperation Council (GCC), Heath added.

By: Anna Jagger
+44 20 8652 3214

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