UpdatePower outage in Saudi's Al-Jubail forces PE, PP plants to shut

20 January 2012 08:50  [Source: ICIS news]

By Ong Sheau Ling and Chow Bee Lin

(Updates with details throughout)

SABIC shut down its PP, PE plantsSINGAPORE (ICIS)--Polyethylene (PE) and polypropylene (PP) plants in Saudi Arabia’s Al-Jubail Industrial Park were forced to shut on the evening of 19 January because of a power outage, raising concerns about polymer prices in China, southeast Asia and India, industry sources said on Friday.
 
Most of the PE, PP plants of SABIC and other major Saudi producers had to be shut down in the industrial complex following the power trip on Thursday evening.

“The power outage did not extend to the entire complex, so some crackers, PE, PP units are unaffected,” a source close to SABIC said.

“Since not all the crackers were down, we can feed the feedstock to the PE and PP plants, reducing the impact of production loss,” he said.

The largest of SABIC’s PE and PP production facilities are housed in Al-Jubail, while other plants are based in Yanbu, he added. (please see table below)

“We have some linear low density polyethylene [LLDPE] inventories, so February allocations will not be severely affected,” he added.

The source was uncertain about the restart date of the affected plants.

Saudi Ethylene and Polyethylene Co (SEPC) and Saudi Polyolefins Co (SPC) had shut their facilities in Al-Jubail as a result of the power trip, a source close to the companies said on Friday.

The source did not know if the plants have resumed production.

SEPC runs a high density polyethylene (HDPE) unit and a low density polyethylene (LDPE) plant at Al-Jubail, each with a capacity of 400,000 tonnes/year.

SPC operates a PP facility with a capacity of 700,000-750,000 tonnes/year.

The PE and PP producers may see a 10% decline in their first-quarter revenue compared to the fourth, a Dubai-based equity analyst said on Friday.

The facilities may not resume operations until after five to seven days, the analyst who covers the Middle Eastern petrochemical industry said.

SABIC markets PP, PE from the following plants:

Company

Product

Nameplate capacity (kt/year)

Arabian Petrochemical Co (Petrokemya)

HDPE

400

LLDPE

400

Eastern Petrochemical (SHARQ)

HDPE

400

400

LLDPE

400

350

Al-Jubail Petrochemical Co (Kemya)

LLDPE

850

LDPE

220

Saudi Kayan Petrochemical Co

HDPE

400

PP

350

Ibn Zahr (Saudi European Petrochemical Co)

PP

320

PP

320

PP

500

For more on PE and PP, visit ICIS chemical intelligence
Please visit the complete
ICIS plants and projects database
Read John Richardson and Malini Hariharan’s blog –
Asian Chemical Connections


By: Ong Sheau Ling
+65 6780 4359



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