Sabic to build second EG plant

Saudi Basic Industries Corporation will construct a new Ethylene Glycol (EG) plant at Jubail United Petrochemical Company. This, Sabic’s seventh EG plant, will have an annual capacity of 625,000 mt. The plant is expected to go on stream by the end of 2005, and will be the second EG plant at United, adding to the existing 575,000 mt/y EG plant that is currently under construction. The plant will use new technology from the US based Scientific Design Company – SABIC and Sud-Chemie manage Scientific Design through a 50:50 joint venture. Ethylene and oxygen feedstock for the new plant will be provided by other SABIC companies – oxygen from its GAS affiliate; and Ethylene from United and Saudi Petrokemya (the Arabian Petrochemical Company). The new plant will boost SABIC’s position as a leading global producer of EG, and help enhance the company’s competitive reach both world-wide and in the Middle East. Ethylene Glycol is the primary feedstock for polyester manufacturing. It is used in anti-freeze, marine engines, x-rays and luggage. The contract for construction of the new plant were not awarded as of 13 October. The successful supplier will be announced later this year.

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