Saudi Arabia's Petro Rabigh delays MEG cargoes – market sources

16 August 2012 08:45  [Source: ICIS news]

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Petro RabighSINGAPORE (ICIS)--Saudi Arabia’s Petro Rabigh has delayed some shipments from its 600,000 tonne/year monoethylene glycol (MEG) plant in Rabigh, Saudi Arabia, because of unspecified mechanical issues, sources close to the company said on Thursday.

It was not immediately clear if the plant was running at a reduced rate or was off line. Market sources had different information.

A source close to the company said the plant was finally restarted about a week ago as it was shut again a few days after it was restarted on around 5-6 August because of some mechanical issues. The source said the unit was running at a reduced rate.

However, a Middle East-based trader said the unit was off line and may be restarted in "three to four weeks". He said he had been informed by the company that his shipments will be delayed.

“We have received notification from Sumitomo that our shipment for August will be delayed for a few days,” a major China-based polyester maker said. However, he added that he did not expect the delayed restart will have major impact on supply.

Petro Rabigh officials were not immediately available for a comment as Middle East closes down for holidays to celebrate the Muslim festival of Eid-ul-Fitr at the conclusion of the fasting month of Ramadan.

The plant was originally shut on 1 July for 26 days of planned maintenance.

The plant has a nameplate capacity of 600,000 tonnes/year of MEG, but is actually capable of producing up to 700,000 tonnes/year of the material, according to sources.

Petro Rabigh is a joint venture between oil and gas firm Saudi Aramco and Japan’s Sumitomo Chemical.

By: Becky Zhang
+65 6780 4359

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