MOSCOW (MRC) -- The Saudi Kayan Petrochemical Company (Saudi Kayan, an affiliate of the country's petrochemical major SABIC), has awarded the construction of an additional cracking furnace at its steamcracker complex at Jubail Industrial City to Taiwan's CTCI, reported TPS with reference to the company's filing to the country's stock exchange Tadawul.
The award is for CTCI to provide preliminary engineering, procurement and construction work to add another furnace to the gas cracker, currently with an ethylene capacity of 1.48 million mt/year. The additional furnace is expected to increase Saudi Kayan's ethylene production by 93,000 mt/year.
Saudi Kayan said the total investment of the project is valued at an estimate $94.5 million and will be financed through local financial institutions. The expansion is expected to finish during the second half of 2017, the company said.
The additional furnace project forms part of Saudi Kayan's agreement with the Ministry of Petroleum and Mineral Resources in exchange for increased ethane allocation signed on February 5, 2015, the company said.
Saudi Kayan's complex at Jubail is also capable of producing 630,000 mt/year propylene, which feeds its 350,000 mt/year polypropylene and 290,000 mt/year cumene plants; 109,000 mt/year benzene, also feeding the cumene plant; 400,000 mt/year high density polyethylene and 300,000 mt/year low density polyethylene plants; and 550,000 mt/year ethylene oxide and 566,000 mt/year monoethylene glycol plants, among other chemical products.
As MRC reported before, Saudi Kayan Petrochemical Co on Tuesday brought forward by one month maintenance plans for some units at its complex in Jubail. The Saudi Basic Industries Corp (SABIC) affiliate will start the shutdown on March 1 rather than March 30, it said in a bourse filing. The shutdown had been postponed from Oct. 31, 2015.
Saudi Kayan Petrochemical Company is a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic).
MRC