Sipchem Launches its Olefins & Derivatives Complex
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.
Mr. Ahmad Al-Ohali, Executive President of Sipchem added that
Sipchem plans to establish a joint stock company to execute this
giant project in line with directives of relevant departments in
the Ministry of Petroleum and Minerals to engage maximum number
of Saudi citizens in these projects.
As Project Management Contractor, Worley Parsons will undertake
the overall management of the project and detailed feasibility as
well as other design work.
Ever since its inception in late 1999, Sipchem has been making
phenomenal progress in every aspect of its business. The Phase-I
of its development witnessed a successful completion and
operation of two world scale methanol and
butanediol plants
that are currently producing at their maximum capacity.
As part of Phase-II of development, construction of acetic acid, vinyl
acetate monomer, and carbon monoxide plants has already started in the second
half of 2006. These plants will start production late 2008 with a
total capacity of 1.15 million mtpa.
With the launch of the ambitious the phase-III olefins
& derivatives complex, Sipchem aims to be one of the
largest private, fully integrated petrochemical complexes in the
Middle East.
Sipchem, with a current total capital of SR 1.5 billion, actively
invests in petrochemical, chemical and hydrocarbon industries,
both basic and intermediate. The third quarter of this year had
witnessed a major landmark in the history of Sipchem when the
company went public and listed in Saudi Stock market.
Ineos to join Sipchem olefins venture in Saudi Arabia.
Ineos is reportedly negotiating with Saudi International Petrochemical Co (Sipchem) to join in the latter's planned $8 bn petrochemical complex that would feature an advanced olefins plant at Al Jubail, Saudi Arabia.
Ineos may take the place of Hanwha Chemical, whose chairman was placed in prison in Korea for assault in early 2007. The olefins venture is slated to be brought online in 2011. A 200,000 tonne/y acrylonitrile facility is included in the third phase of the project. The Sipchem venture will have capacity of 1 M tonnes/y of ethylene and 215,000 tonnes/y of propylene.
An earlier reported Ineos olefins jv in Al Jubail, called Ineos-Delta, is expected to be dropped. No feedstock allocation may likely be secured since Ineos-Delta has failed to meet the country's industrial investment regulations. Sipchem is also discussing a jv with Lucite for a 250,000 tonne/y methyl methacrylate plant in Al Jubail.
酢酸計画 Sipchem Signed Joint Venture Agreement for Carbon Monoxide Project
Sipchem and Eastman Sign Definitive Agreements for Acetyls Technology
Sipchem and DuPont Sign Final Agreements for VAM Technology
Celanese Brings Suit Against Saudi
Arabian Acetyls Company
（Sipchem denies
alleged claims in a lawsuit ）
September 06, 2006
Sipchem to Commence
Execution of Acetyls Complex Project
The Saudi International Petrochemical Company (Sipchem) announced
that it had commenced construction works for building the Acetyls
Complex, which consists of three plants: the Acetic Acid plant
(460 thousand tons per annum), the Vinyl Acetate Monomer plant
(300 thousand tons per annum) and the Carbon Monoxide plant (345
thousand tons per annum) in addition to the utilities and offsite
facilities at King Fahad Industrial Seaport in Jubail. This
complex will be located at Sipchem`s site in the industrial city
of Jubail. According to the stated plan of the project, this
complex will start commercial operation in early 2009. Being the
first of its type in the Middle East region, this complex
constitutes a great achievement for Sipchem and its affiliates
and its completion will be in line with Sipchem`s vision and
stated objectives of investment in value-added petrochemical
projects that would realize optimal returns for the shareholders.
This SR 4-billion project represents the second phase of
Sipchem`s projects.
Fluor Canada will be in charge of building the Acetic Acid plant
and the Vinyl Acetate Monomer plant, while Lurgi AG (Germany) /
AirLiquide JV (France) will be in charge of building the Carbon
Monoxide project.
The Acetic Acid and the Vinyl Acetate Monomer projects will be
jointly owned by the Saudi International Petrochemical Company
(Sipchem) and Helm Arabia GMBH (Germany), whereby the two
partners will be in charge of marketing the Acetic Acid and Vinyl
Acetate Monomer products in the global markets.
The ownership of the Carbon Monoxide project will be shared by
the Saudi International Petrochemical Company (Sipchem) and the
National Power Company (Saudi Arabia).
In this regard, Mr. Ahmed Al-Ohali, Sipchem President remarked
that this project would create over 500 direct job openings. Mr.
Ohali added that a few months ago Sipchem had recruited more than
100 young Saudi high school graduates who are now receiving
training at specialized pre-service training centers and will
join the projects` working team after graduation. Mr. Ohali also
added that products of the new complex would open up a wide scope
for various other processing industries in the Kingdom.
The Saudi International Petrochemical Company (Sipchem) is a
Saudi joint stock company established in late 1999. Sipchem
currently operates a Methanol plant with an annual production
capacity of one (1) million tons and a Butanediol plant with a
production capacity of 75 thousand tons per annum. It is to be
noted at this point that on Saturday 09 September 2006, Sipchem
will be offering 30% of its shares to the public.
October 16, 2005
Sipchem Signed Joint Venture Agreement for Carbon Monoxide
Project
Saudi International
Petrochemical Company (Sipchem) and National Power Company (NPC)
jointly announced the signing of a Joint Venture Agreement
establishing a 265,000 tons per year Carbon Monoxide project in
the Sipchem Acetyls Complex in Al-Jubail Industrial City. Carbon
Monoxide is a main feedstock for the Acetic Acid Project. By
signing this agreement with NPC, Sipchem has completed all the
Joint Venture Agreements for its Acetyls complex.
Sipchem announced earlier that it has signed Technology
Agreements for Acetic Acid and VAM with Eastman Chemicals and
DuPont, respectively. Sipchem also announced earlier the signing
of Joint Venture Agreements and Marketing and Off-take agreements
with Helm Arabia and Helm AG for the production and marketing of
Acetic Acid and VAM.
The three Acetyls Projects are currently in the bidding stage for
engineering and construction. It is expected to have the Acetyls
complex operational in 2008.
The Acetyls complex, the first of its kind in Middle East,
represents the 2nd phase of the company’s plan to create additional growth
opportunities for Sipchem. The company is committed to continue
producing high added value products which will increase the
benefits of shareholders.
Sipchem is a Saudi joint stock company founded in 1999 with
current paid in capital of SR 1,500 Million (US$400) million. Its
shareholders comprise leading corporate organizations and
investors in the Gulf Cooperation Council region. Sipchem
currently operates a 1.0 million tons per year methanol plant,
and has just started up a 75,000 tons per year BDO plant. Sipchem
recently mandated National Commercial Bank (NCB) as a financial
advisor and main underwriter to mange the company IPO which is
planned for the first quarter of 2006
NPC is a closed joint stock company established in 2001 with paid
in capital of SR200 Million ($53.3 Million) and owned by Al-Zamil
and Al-Saif groups. The company invests in various Power
production and distribution Projects.
May 07, 2005
Sipchem and Eastman Sign Definitive Agreements for Acetyls
Technology
Saudi International Petrochemical Company (Sipchem) and Eastman
Chemical Company (NYSE: EMN) today jointly announced they have
signed the definitive agreements for Eastman to license its
proprietary acetyl co-production technology to Sipchem. The
licensing agreement is part of Sipchem’s plan to establish a world-scale
acetyls complex in the Kingdom of Saudi Arabia through expansion
of its petrochemical complex in Jubail Industrial City. The
acetyl complex is expected to start-up in 2008. Terms of the
agreements were not disclosed.
Eastman’s acetyl co-production technology
will allow for production of acetic acid and acetic anhydride at
a cumulative capacity of 460,000 tons per year. In addition to
the technology license, Eastman will provide technical support
and market all acetic anhydride produced from the facility.
According to Ahmed A. Al-Ohali, president of Sipchem, “The acetyl complex represents our
planned Phase II project to provide additional growth
opportunities for Sipchem and continuing success on our journey
to produce value-added products and superior returns for our
shareholders. Combined with the natural gas feedstock from Saudi
Aramco, and methanol from Sipchem`s affiliate International
Methanol Company located at the same site, we have planned a
world-class complex in terms of technology, partners and
value-creating potential." Sipchem had previously announced
acquiring licensing rights from DuPont for vinyl acetate monomer.
Ron Lindsay, vice president and general manager of Eastman’s performance chemicals and
intermediates business, said, “This agreement leverages the
proprietary technology and know-how of Eastman and combines those
with Sipchem`s strengths within Saudi Arabia to provide a win-win
opportunity for both parties. This second source of acetyls for
Eastman will allow us to reliably meet the long-term, growing
needs of our global acetic anhydride customers, particularly
within the Asia Pacific region.”
Sipchem is a Saudi
joint stock company founded in 1999 with current paid in capital
of US$173 million with participation from leading corporate
organizations and investors in the Gulf Cooperation Council
region. Sipchem currently operates a 1.0 million tpy methanol
plant, and is constructing a 75,000 tpy butanediol plant,
scheduled for start-up in December 2005.
Eastman Chemical Company (NYSE:EMN) manufactures and markets
chemicals, fibers and plastics worldwide. It provides key
differentiated coatings, adhesives and specialty plastics
products; is the world’s largest producer of PET polymers
for packaging; and is a major supplier of cellulose acetate
fibers. Eastman is leveraging its heritage of innovation and
strength in polyester, acetyl and organic chemistry technologies
to drive growth and meet increasing demand in four select
markets: building and construction, packaging, health, and
electronics. Founded in 1920 and headquartered in Kingsport,
Tenn., Eastman is a FORTUNE 500 company with 2004 sales of $6.6
billion and approximately 12,000 employees.
August 09, 2004
Sipchem and DuPont Sign Final Agreements for VAM Technology
Saudi International
Petrochemical Company (Sipchem) has signed Definitive Agreements
with DuPont to license DuPont technology for a new 300,000
tons/yr. vinyl acetate monomer (VAM) manufacturing plant to be
located in Al- Jubail Industrial City, Kingdom of Saudi Arabia.
DuPont will provide its VAM technology under license and provide
technical assistance for the Sipchem VAM facility.
The planned VAM facility will be integrated into other
petrochemical facilities currently planned for the site. Sipchem,
a Saudi joint stock company, is capitalized at US$ 173 million
(SR 650 million). Sipchem plans to produce and market VAM, maleic
anhydride, butanediol, methanol and acetic acid from the new
world-class manufacturing site facilities.
H.E. engineer Abdulaziz A. Al-Zamil, chairman of Sipchem said
"The acetyl complex will provide further growth
opportunities for Sipchem representing our vision for developing
investments in the petrochemical industry to produce value-added
products benefiting from the support of the Saudi Government and
the available resources of the region".
"DuPont is pleased to have its VAM technology and expertise
chosen for a project of this scale," said Craig Binetti,
vice president and general manager ? DuPont and president of
DuPont Packaging and Industrial Polymers. "Licensing our
technology to Sipchem demonstrates our commitment to technology
investment into global cost-advantaged regions. It also allows
DuPont strategic, sustainable development in key regions of the
global economy. Our relationship with Sipchem is a model for
future growth."
Ahmed A. Al-Ohali, president of Sipchem says, “Our agreement with Dupont for the
supply of the VAM technology conclude our efforts in securing
sound know-how for the acetyls complex. Associating with
carefully selected technology leaders is an important factor for
the success of Sipchem. Our license agreement with DuPont and the
earlier announced license agreement with Eastman Chemical Company
for the acetic acid will enable Sipchem to have a good start in
entering the acetyls business. Competitive feedstock and
proximity to key markets are other factors for our success".
Sipchem is a Saudi joint stock company with participation from
leading corporate organizations and investors in the Gulf
Cooperation Council region. In its first phase development
strategy, Sipchem is constructing a 1.0 million tpy methanol
plant, scheduled to be operational in January 2005 and a 75,000
tpy Butanediol plant, scheduled for start-up in December 2005. In
addition to the acetyls complex which is expected to come on
stream in 2008, the company is reviewing plans for building other
important petrochemical plants.
DuPont is a science company. Founded in 1802, DuPont puts science
to work by creating sustainable solutions essential to a better,
safer, healthier life for people everywhere. Operating in more
than 70 countries, DuPont offers a wide range of innovative
products and services for markets including agriculture,
nutrition, electronics, communications, safety and protection,
home and
2008/6/17
plastemart.com
Sipchem shelves plans of 1.3 mln tpa cracker project at Al-Jubail
Major challenges on costs, schedule, availability of qualified
contractors and financing faced by Saudi International
Petrochemical Co (Sipchem) has forced the company to abandoned
plans for a 1.3 mln tpa cracker project at Al-Jubail, Saudi
Arabia. Besides the cracker, Sipchem has also dropped plans for low-density
polyethylene (LDPE), high density PE (HDPE) and polypropylene
(PP) plants
that were part of the original project configuration.
Sipchem, which has received gas allocation for its cracker
project, will focus on differentiated products which include ethylene vinyl
acetate (EVA), acrylonitrile (ACN), methyl methacrylate (MMA),
polymethyl methacrylate (PMMA), polyacetals and polyvinyl acetate
(PVA), sodium cyanide and carbon fibre.