Saudi Arabia's SABIC signs new JV deal to build new butanol plant

27 December 2012 03:43  [Source: ICIS news]

By Nurluqman Suratman Chemicals M&A deals are being done

SINGAPORE (ICIS)--SABIC said late on Wednesday that it has signed an agreement with Saudi Kayan Petrochemical Co (Saudi Kayan) and Sadara Chemical Co (Sadara) to build a new butanol plant in Saudi Arabia.

The butanol plant will be located at Tasnee Petrochemicals Complex in Jubail Industrial City and be operated by Tasnee, SABIC said in a statement.

The plant, which will cost around Saudi riyal (SR) 1.94bn ($517m), is scheduled to come on stream in the first quarter of 2015, SABIC added.

The facility will be designed to produce 330,000 tonnes/year of n-butanol and 11,000 tonnes/year of iso-butanol, the Saudi Arabian company said.

SABIC, Saudi Kayan and Sadara will have an equal stake in the butanol plant’s output, which will be used for downstream application or for sales in local and overseas markets.

SABIC added that it will be marketing Saudi Kayan’s share of the butanol plant’s output.

“The butanol project will strongly support the coatings value chain in the Kingdom,” said Mutlaq Al-Morished, Saudi Kayan’s chairman and SABIC’s executive vice-president of corporate finance.

“Potential investors can build on the normal-butanol and its derivates produced by the new joint-venture partners, and introduce a wide range of coating products for the local, regional and global markets,” he added.

The new plant will be the first butanol production facility in the Middle East and the largest in the world, according to SABIC.

Under the joint-venture agreement, the three companies will also establish a new firm called Saudi Butanol Co.

($1 = SR3.75)


By: Nurluqman Suratman



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