SABIC eyes coal-based China petchem complex joint venture
Nurluqman Suratman
31-May-2016
(adds details throughout)
SINGAPORE (ICIS)–SABIC has signed an agreement with Chinese
producer Shenhua Ningxia Coal Industry Group (SNCG) to build
a joint venture petrochemical complex in the Ningxia Hui
region of China, the Saudi Arabia-based chemicals major
said.
The proposed joint venture complex in north-central China will utilise locally available coal feedstocks to be supplied by SNCG, SABIC said.
“The parties would proceed with further actions to implement the project in the event of a positive final investment decision and subject to obtaining all necessary governmental approvals,” it said in a statement issued late on Monday.
Financial details of the agreement and project timeline were not disclosed.
The two firms will soon conduct a joint feasibility study on the project and seek the required regulatory approvals within three years, it said.
“This project is part of SABIC’s ongoing strategy to geographically diversify its operations and to seek future investment opportunities that opens doors to new markets,” SABIC said.
SABIC currently operates a petrochemical complex in Tianjin
via its SABIC Tianjin Petrochemical Company (SSTPC) joint
venture with state-owned major Sinopec.
The Tianjin complex in northeastern China
houses a 1m tonne/year naphtha cracker and various downstream
units. (Please see capacities in the table below)
The Ningxia petrochemical project with SNCG will help protect SABIC against the fluctuations and cyclical movements in feedstock prices in the international markets, SABIC vice chairman and CEO Yousef Al-Benyan said in the statement.
In the first quarter of the year, SABIC posted a 13.2% year-on-year fall in net profit to Saudi riyal (SR) 3.41bn ($909m) amid lower product prices, which tracked the global energy prices.
Shenhua Ningxia Coal Industry is a unit of
Shenhua Group, which is China’s biggest coal producer.
The company has a coal-to-chemical complex in Ningdong,
where it produces methanol, propylene and polypropylene,
according to ICIS data.
SABIC Tianjin Petrochemical
Company
|
Product |
Capacity |
Unit |
|
Acetone |
130,000 |
tonne/year |
|
Benzene |
400,000 |
tonne/year |
|
Butadiene |
200,000 |
tonne/year |
|
Diethylene glycol |
24,000 |
tonne/year |
|
Ethylene |
1,000,000 |
tonne/year |
|
Ethylene Glycol, Mono |
380,000 |
tonne/year |
|
Ethylene oxide |
365,000 |
tonne/year |
|
Methyl tertiary butyl ether |
120,000 |
tonne/year |
|
Phenol |
220,000 |
tonne/year |
|
Polyethylene high density |
300,000 |
tonne/year |
|
Polyethylene linear low density |
300,000 |
tonne/year |
|
Polypropylene |
450,000 |
tonne/year |
|
Propylene |
500,000 |
tonne/year |
|
Toluene |
275,000 |
tonne/year |
|
Xylene, mixed |
310,000 |
tonne/year |
Source: ICIS plants and projects database
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