CPChem & SIIG give go-ahead for Saudi styrene project

29 June 2004 01:23  [Source: ICIS news]

HOUSTON (CNI)--Chevron Phillips Chemical (CPChem) and Saudi Industrial Investment Group (SIIG) announced late Monday they have approved construction of an integrated styrene facility and expansion of an adjacent aromatics plant at Al Jubail, Saudi Arabia.

The two companies said in a joint statement issued here that the $1.2bn (Euro984m) joint venture project will be completed and ready for start-up in 2007.

 

Earlier planning for the project had envisioned a start-up in 2006.

 

The engineering and procurement contract for the new facility has been awarded to JGC Corp, and the construction contract has been given to JGC Arabia.

 

Financing for the project will be done with unspecified capital contributions from the two jv firms but will include loans from commercial banks and Saudi government agencies.

 

When completed, said the statement, the styrene facility will include feed fractionation, an olefins cracker, ethyl benzene and styrene monomer process units and associated utilities and infrastructure.  The size of the styrene facility was not specified.  But earlier configurations of the project had anticipated a styrene capacity of some 600 000 tonne/year.

 

The existing aromatics plant that is to be expanded as part of the project will supply feedstock to the styrene facility.

 

The new styrene facility will be owned by Jubail Chevron Phillips Company, a 50:50 joint venture between SIIG and Arabian Chevron Phillips Petrochemical Co (Arabian CP Petchem), a subsidiary of CPChem.

 

The existing aromatics plant is owned by Saudi Chevron Phillips Co, another jv of SIIG and Arabian CP Petchem.

 

SIIG chairman Sheikh Abdualaziz Zaid Al-Quaraishi said the project with CPChem results from “a long-standing and constructive relationship” between SIIG and CPChem.

 

CPChem president and chief executive Jim Gallogly said:  “The styrene plant and expansion of the existing aromatics plant build upon the strong foundation we have established in the region and is a further example of our pursuit of strategic growth opportunities and geographic diversification.”

 

Jubail Chevron Phillips Co will operate the new facilities and market the products in the Arab Gulf region.  A CPChem subsidiary will be responsible for marketing export volumes elsewhere in the world.

ICIS Copyright © Reed Business Information 2009

Author: Joe Kamalick
+1 713 525 2653

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