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PetroRabigh to hike ethylene output by 30%
Apr '11
Mr Labban, Chief Executive of the Saudi-based PetroRabigh said that, presently the company is contended with its refining margins, but the global economy may experience more slumps, which may lead to a fall in the demand for oil products.

The company which came into existence as a result of joint venture between Saudi Aramco and Japan's Sumitomo Chemical, each year produces 2.4 million tons of petrochemicals and 18 million tons of refined products.

The company official while speaking on the sidelines of an industry meeting said that, presently the company has very robust crack spreads.

The Rabigh project located on Saudi Arabia's Red Sea coast has a petrochemical complex and an oil refinery with a capacity of 425,000 barrels per day. The refinery is engaged in production of gasoline, fuel oil, naphtha, gas oil and such other products.

Mr Labban further revealed that, they were now inviting prospective bidders to submit a tender for undertaking construction work in respect of second phase of the Rabigh project.

The second phase of the Rabigh project – PetroRabigh II, would boost the ethylene production capacity by around 30 percent, and would also lead to an addition of 17 new plants.

The chief official of the company said that, presently the cracker, housing a capacity to churn out 1.25 million tons per year, exclusively uses ethane for its functioning, but post-expansion it would function using both, ethane as well as naphtha from the refinery.

Presently, the refinery each day produces 72,000 barrels of naphtha, which would be entirely passed on for ethylene production, post expansion.

Fibre2fashion News Desk - India

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