Jan 29, 2011
Saudi
Kayan, Sadara, SAAC form joint venture Saudi Butanol
Company to build world's largest butanol plant
Kayan inks deal with
Saudi firm and Dow-Aramco
* Kayan says partners to equally share costs
* Plant have capacity of 330,000 tonnes of n-Butanol
* To be online in H2 2014
Saudi
Kayan Petrochemicals
on Saturday signed a preliminary agreement with Saudi Acrylic Acid
Co (SAAC)
and a
joint venture between U.S. Dow Chemical and Saudi Aramco to build a 1.8 billion-riyal
($480 million) n-Butanol plant in the kingdom.
Kayan said in a bourse statement that the three partners will
each hold an equal stake of 33.3 percent in the plant and would
share the costs of the project.
The plant, designed to have an annual capacity of 330,000 tonnes of
n-Butanol,
will be located in Jubail and operated by SAAC, Kayan said.
Production is due to start in the second half of 2014.
Kayan, an affiliate of petrochemicals major Saudi Basic
Industries Corp (SABIC) is expected to begin commercial
production at its Jubail petrochemicals complex in the second
half of the year.
Aramco and Dow plan to build a $20 billion mega petrochemical
project in Jubail.
KBR Awarded Contract by Saudi Kayan Petrochemical Company for Operator Training Simulator
Houston, Texas - November 5, 2009 - KBR (NYSE: KBR) announced today that it has been awarded a contract by Saudi Kayan Petrochemical Company (SAUDI KAYAN) to develop and implement an Operator Training Simulator (OTS) for its grassroots phenol plant located in Saudi Arabia.
KBR, who is also the technology licensor for the phenol plant, will develop a customized, high-fidelity simulator to be used for the initial training of SAUDI KAYAN phenol plant operators and for continual refresher training after plant startup. The overall system will consist of custom dynamic models developed by KBR that will accurately mimic the actual behavior of the phenol plant. The models will be connected to a set of dedicated control system hardware and operator consoles that will allow plant operators to train in a realistic environment without disrupting normal plant operations. The goal is to significantly reduce downtime and sustain high on-stream factor for SAUDI KAYAN’s first phenol plant in Saudi Arabia.
"KBR is pleased to continue building on our strong relationship with SAUDI KAYAN for this OTS system implementation," said Tim Challand, President, KBR Technology. "The award exemplifies the diversity of services KBR offers our clients and allows us the opportunity to showcase our expertise in advanced chemical engineering applications."
KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets. For more information, visit www.kbr.com.
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| Product Name | Annual Production (KMT) |
| Ethylene | 1,478 |
| Propylene | 630 |
| Benzene | 109 |
| Polyethylene | 700 |
| Polypropylene | 350 |
| Ethylene Glycols | 537 |
| Polycarbonate | 260 |
| Ethanolamines | 100 |
| Acetone | 133 |
| Dimethyl Formamide | 50 |
| Ethoxylates | 40 |
| Choline Chloride | 20 |
| Bisphenol A | 240 |
2006/6/28
SAUDI KAYAN has awarded Kellogg Brown & Root (KBR) a contract for engineering, procurement and construction of a 1,350,000 tons per annum Olefins Plant. The plant will be erected at the SAUDI KAYAN Cracker complex in the Jubail Industrial City, Kingdom of Saudi Arabia.
January 1, 2009
Saudi Kayan closes $6bn financing deal.
Saudi Kayan Petrochemical Company has secured $6 billion financing for its industrial complex after it obtained a $533 million loan from a state-owned fund, the company said.
Kayan signed an agreement on Wednesday with the Saudi Industrial Development Fund for financing, the company said in a statement posted on the bourse website.
'The completion of (Kayan's) project's financing requirements has now been concluded,' Kayan's chief executive Mutlaq al-Morished was quoted as saying in the statement.
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December 8 2009
Sabic’s Kayan unit eyes 2010 production
Saudi Kayan Petrochemical Co., a unit of Saudi Basic Industries Corp. (SABIC), will begin production in 2010, SABIC’s chief executive said on Monday. “The Kayan complex will start production by 2010... the Kayan complex contains 16 plants, some of them will start production in 2010 and others will follow in 2011... this is a giant complex,” Mohammed Al-Mady told Reuters on the sidelines of a conference in Dubai.
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SAUDI KAYAN AWARDS TWO CONTRACTS TO TECNICAS REUNIDAS AND DAELIM FOR THE CONSTRUCTION OF PHENOLICS AND POLYCARBONATES PROJECTS AT JUBAIL INDUSTRIAL CITY
10/02/2007
SABIC affiliate, SAUDI
KAYAN, has signed two letters of award with the first contract
being awarded to TECNICAS REUNIDAS GROUP to construct a Phenolics
Plant, to produce 240 kta of Bis-Phenol A.
The second contract
was awarded to DAELIM Industrial Co, Ltd. to construct a
Polycarbonate (PC) plant to produce 260 kta of PC.
The letters of award were signed by Mr. Abdullah S. Al-Rabeeah,
President of SAUDI KAYAN. Mutlaq Al-Morished, SABIC Vice
President Corporate Finance and Chairman of SAUDI KAYAN explained
that the company plans to go live in 2009 with an annual capacity
exceeding 4 million tons of varied petrochemical products. These
products will strengthen SABIC’s competitiveness, introduce
specialty products for the first time in Saudi Arabia, provide
wide opportunities for the growth and diversity of national
downstream industries and create promising job opportunities for
Saudi citizens.
SAUDI KAYAN is currently under construction. SABIC holds 35
percent of the company’s capital of SR 15 billion and the
Kayan Petrochemical Company holds 20 percent. The remaining 45
percent will be offered for public subscription.
| During
the first quarter of 2006 Saudi Arabia's Sabic announced
that it had become a 'strategic partner' in
the formation of a company called Saudi Kayan
Petrochemical Company (Saudi Kayan). The new company is
headquartered in Riyadh, Saudi Arabia. Saudi Kayan is building a 6 million tpa petrochemical complex. Located in Al Jubail Industrial City, the complex is due to become operational in late 2009. By June 2009, about 94.21% of engineering works were completed. The average completion of construction, supply and engineering works is 78.3%. The project is expected to be fully completed in 2010. The land for the complex was leased by the Royal Commission to Jubail and Yanbu for 30 years starting April 2007 at a nominal rent. Products will include 1.35 million t/y of ethylene and finished products such as propylene, polypropylene, ethylene glycol and butane-1 at 2.6 million t/y. Downstream products will include aminoethanols, aminomethyls, dimethylformamide, choline chloride, dimethylethanol, dimethylethanolamine, ethoxylates, phenol, cumene, acetone and polycarbonate. Sabic says that these downstream products will provide a wider range of opportunities for downstream industries. Finance July 2006 saw Sabic enter into an agreement with BNP Paribas, Arab Banking Corporation and Samba Financial Group to act as financial advisers and lead arrangers for a loan of approximately $4.8bn for Saudi Kayan. Sabic appointed Samba as its financial adviser and initial public offering (IPO) manager for Saudi Kayan's public subscription in 2006. In May 2008, Saudi Kayan entered into a 15-year agreement with a group of regional and international financial institutions and banks for funding the construction of its new complex to the extent of $6bn. "Kellogg Brown and Root (KBR) was awarded the contract to build Saudi Kayan's 1.35 million tpa ethylene plant." Funds will be provided by ABN AMRO, HSBC, BNP Paribas, Arab Banking and Samba Financial Group. The export credit agencies are KEIC, ECGD, SACE and K-EXIM. Saudi Arabia's Public Investment Fund is also financing the project and Al Rajhi Banking & Investment is providing an Islamic working capital facility. The Saudi Industrial Development Fund provided a $533m loan to Saudi Kayan towards construction costs. Sabic holds 35% in the company with Saudi Kayan holding 20%. The remaining 45% will be offered for public subscription. Ethylene plant Kellogg Brown and Root (KBR) was awarded the contract to build Saudi Kayan's 1.35 million tpa ethylene plant. The lump sum service contract will see KBR providing engineering, procurement and construction management on the plant. Front end engineering and design will take place at KBR's headquarters in Houston while engineering and procurement activities will be conducted in the company's Singapore office. The production unit will be located in Jubail City, Saudi Arabia. Ethylene technology KBR will provide its Selective Cracking Optimum Recovery (SCORE™) technology for the 1.35m tpa ethylene unit. KBR said the new facility will be the fourth grassroots cracker to use KBR's SCORE™ technology. Off sites and utilities During June 2006, Saudi Kayan Petrochemical Company signed a letter of intent with Fluor Company for the construction of off-site utilities. Background At the beginning of 2006 Sabic announced that it was planning to establish a partnership with Kayan Petrochemicals to build a worldscale petrochemical complex. An initial memorandum of understanding was signed in January 2006. As well expanding the range of products produced in Saudi Arabia, Saudi Kayan intends to establish an applications centre which will focus on the development of industrial products and applications. Contractors At the end of January 2007 Saudi Kayan Petrochemical Company awarded two contracts related to polyolefin units at its petrochemical complex to be built in Jubail Industrial City, Saudi Arabia. "The project is expected to be fully completed in 2010." The contract for a 350,000tpa polypropylene (PP) plant was awarded to Samsung Engineering, while Simon Carves won the contract for the 300,000tpa linear low density polyethylene (ldPE) plant. The value of the contracts was not disclosed. During February 2007 Saudi Kayan Petrochemical Company awarded contracts related to the construction of bisphenol-A (BPA) and polycarbonate units at its petrochemical complex, located in the Al Jubail Industrial City, Saudi Arabia. Spain's Tecnicas Reunidas will be responsible for the construction of a 240,000tpa bisphenol-A facility, while Korea's Daelim Industrial will build a 260,000tpa polycarbonate unit. Process technology for the polycarbonate plant will be provided by Asahi Kasei. The value of these contracts was not disclosed. The contract for general construction works such as civil, electrical, structural, piping and instrumentation was awarded to Mohammed Al Mojil Group in December 2007. A three-year contract start-up programme for the complex was awarded to Shell Global Solutions in February 2008. During June 2008 Singapore's Van Leeuwen Pipe and Tube announced that it had been awarded a contract to supply carbon steel, alloy steel and stainless steel pipes, fittings and flanges for the Saudi Kayan Olefins complex. The value of the initial contract is said to be in excess of $38m. |
Saudi Kayan, Sadara, SAAC form joint venture
to build world's largest butanol plant
A three-way shareholders agreement to establish the Saudi
Butanol Company, which will produce butanol to support the continued
growth of the paints and coatings industry in Saudi Arabia, has been signed by
the Saudi Kayan Petrochemical Company (Saudi Kayan),
a manufacturing affiliate of the Saudi Basic Industries Corporation (SABIC),
Sadara Chemical Company (Sadara), a joint venture
developed by Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical
Company (Dow), and Saudi Acrylic Acid Company (SAAC),
an affiliate of National Industrialization Company (Tasnee) and Sahara
Petrochemicals Company.
This will be the first ever butanol plant in the Middle East and the largest in
the world. To be located at Tasnee Petrochemicals Complex in Jubail Industrial
City and operated by Tasnee, the new plant is
scheduled to go on-stream in the first quarter of 2015. It will open new job
opportunities of around 200 direct and indirect positions for Saudi citizens in
strong support of the Kingdom's efforts to create meaningful jobs for nationals.
The agreement was signed on December 26 by Mutlaq Al-Morished, Saudi Kayan
Chairman and SABIC Corporate Finance Executive Vice President; Ziad Al-Labban,
Sadara Chief Executive Officer; and Dr. Moayyed Al-Qurtas, SAAC Chairman and
Tasnee Vice Chairman and CEO.
Under the agreement, the three partners will have equal
stake in the production quantities for downstream use or for sales in the
local and overseas markets. The design capacity of the plant, which is scheduled
to go on-stream in 2015, is 330,000 metric tons per annum
of n-butanol and 11,000 metric tons per annum of
iso-butanol. SABIC will be marketing the Saudi Kayan share of the butanol
plant along with the excess material of SAAC. The estimated total cost of the
project is SR1,939m.
Commenting on the benefits of the new joint venture to the Saudi paints and
coating industry, Mutlaq Al-Morished said, "The butanol project will strongly
support the coatings value chain in the Kingdom. Potential investors can build
on the normal-butanol and its derivates produced by the new joint venture
partners, and introduce a wide range of coating products for the local, regional
and global markets. Saudi Kayan constantly seeks new materials and open up new
opportunities for our customers."
Ziad Al-Labban commented, "This is another outstanding example of Sadara's
commitment to success through collaboration with industry players and service
providers in the Kingdom, and we are pleased to team up with Saudi Kayan and
SAAC. We are proud that the butanol-based products which we will bring to market
will be manufactured in the Middle East for the first time and will be a
significant contributor to the continued success of downstream industries in
Saudi Arabia."
Dr. Moayyed Al Qurtas said that the butanol plant will provide additional
integration to SAAC's Acrylates Complex, which is the first complex of its kind
in the region. "We appreciate the opportunity we have got to cooperate with
SABIC/Saudi Kayan and Sadara and for their trust in Tasnee to build and operate
the largest butanol plant in the world on behalf of the partners. We all can
benefit from the economies of scales which will enhance our national
petrochemical industries' competitiveness in the world."