Sipchem Houston complex to produce 1.3 mtpa of ethylene & propylene

20 Nov '06

3 min read

Saudi International Petrochemical Company (Sipchem) has announced the award of the Project Management Contract for its massive Polyoelfins complex to Worley Parsons, Houston, USA and the Financial Advisory role to HSBC. The massive, fully integrated olefins & derivatives complex will consist of a cracker unit that will produce ~1.3 million metric tons per annum (mtpa) of ethylene and propylene.

These basic olefins will be used in the production of ~800 thousand mtpa of polymers such as high density polyethylene (HDPE), low density polyethylene (LDPE), polypropylene (PP), and ethylene vinyl acetate (EVA). The project will complete the products integration to further down stream added-value performance products.

Sipchem and its potential partners in this project who signed the feedstock allocation letter with Saudi Aramco: Mitsui of Japan, DuPont of USA, and Lucite of UK are working on the final agreements of the projects which are expected to be signed early next year, while start-up of projects will commence in 2011. The total production of the complex will amount to 3 million mtpa of 18 different products. The project will fulfill obligations scheduled and agreed with the Ministry of Petroleum and Minerals.

According to HE Mr. Abdulaziz Al-Zamil, Chairman of Sipchem, in line with Sipchem's strategy to create new investment opportunities that stimulate economic and social development, the company continuously explores the prospects of phase-wise growth and expansion. Such projects add value to the abundant natural resources of the Kingdom, and create additional jobs for the growing number of Saudi youth. As per Mr. Al-Zamil, the entire complex, estimated to cost more than US$ 7 billion, will consist of 20 world scale plants and will employ more than 3,000 personnel.

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