25 May 2012 10:22 [Source: ICIS news]
TOKYO (ICIS)--Sumitomo Chemical and Saudi Aramco have decided to proceed with phase two expansion of their joint venture in Saudi Arabia – Petro Rabigh – after completing a joint feasibility study on the project, the Japanese chemical producer said on Friday.
Total investment in Rabigh II project is estimated to reach about $7bn (€5.6bn), the company said in a statement.
The project includes expanding Petro Rabigh’s existing 1.3m tonne/year ethane cracker, as well as building a new aromatics complex using additional 30m standard cubic feet/day of ethane and approximately 3m tonnes/year of naphtha as feedstock, according to Sumitomo Chemical.
The new plants in the project are expected to start coming on stream in the first half of 2016, the company said.
Engineering, procurement and construction (EPC), as well as the financing of the project, will soon be finalized, Sumitomo Chemical said.
The project’s main products will be ethylene propylene rubber (EPR), thermoplastic polyolefin (TPO), methyl methacrylate (MMA) monomer, polymethyl methacrylate (PMMA), low density polyethylene/ethylene vinyl acetate (LDPE/EVA), para-xylene/benzene, cumene and phenol/acetone, the Japanese firm said, without specifying capacities.
“With respect to acrylic acid, superabsorbent polymer (SAP), caprolactam, nylon-6 and polyols, Sumitomo Chemical and Saudi Aramco will continue to explore the best possible mode of operation to implement projects on those product lines, including possible collaboration with a third party,” Sumitomo Chemical added.
Sumitomo Chemical and Saudi Aramco have a 37.5% stake each in Petro Rabigh.
($1 = €0.80)
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