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SABIC Plans to Build Second Ethylene Glycol Plant at Jubail United

Source: www.gulfoilandgas.com 10/1/2003, Location: Middle East

Riyadh, Saudi Arabia (October 1, 2003): Saudi Basic Industries Corporation (SABIC) today announced plans to construct a new Ethylene Glycol (EG) plant at Jubail United Petrochemical Company (UNITED). This, SABICís seventh EG plant, will have an annual capacity of 625,000 mt.
The plant is expected to go on stream by the end of 2005, and will be the second EG plant at UNITED, adding to the existing 575,000 mt/y EG plant that is currently under construction.

The plant will use new technology from the US based Scientific Design Company - SABIC and Sud-Chemie manage Scientific Design through a 50:50 joint venture. Ethylene and oxygen feedstock for the new plant will be provided by other SABIC companies - oxygen from its GAS affiliate; and Ethylene from UNITED and PETROKEMYA (the Arabian Petrochemical Company).

The new plant will boost SABICís position as a leading global producer of EG, and help enhance the companyís competitive reach both worldwide and in the Middle East. By 2006, SABICís total EG production will reach 3.5 million mt/y - meeting over 20% of global demand. 1.5 million mt will be produced at SHARQ (Eastern Petrochemical Company, Al-Jubail); 1.2 million mt at UNITED (Jubail United Petrochemical Company); 800,000 mt at YANPET (Saudi-Yanbu Petrochemical Company, Yanbu).

Ethylene Glycol is the primary feedstock for polyester manufacturing. It is used in anti-freeze, marine engines, x-rays and luggage.

The contract for construction of the new plant has not yet been awarded. The successful supplier will be announced later this year.

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