According to the terms of the deal, the projects are to be commissioned not later than the second quarter of 2017.
Till this date or the completion date of the project, Saudi Kayan will be utilising the allocated ethane instead of Butane to produce ethylene.
“The agreement stipulates that SABIC will reduce the marketing costs by one-third value from July 1, Omar Al-Amoudi, chairman, Saudi Kayan said.
He also indicated that this agreement would probably have a positive financial impact on the company’s financial performance.
This translates into SR 280 million in 2015 and SR 600 million per annum upon completion of the projects, by taking current prices and production rates into consideration. (AR)
Fibre2fashion News Desk - India