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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC
Edited by the Processingtalk Editorial Team on 01 August 2005

Olefins, Ethylene Glycol and
Polyethylene plants

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SABIC affiliate, Eastern Petrochemical Company (SHARQ), has signed letters of intent to award contracts for Olefins, Ethylene Glycol and Polyethylene plants

SABIC affiliate, Eastern Petrochemical Company (Sharq), has signed letters of intent to award the following contracts 1) Stone and Webster, UK, to construct an Olefins Plant with a production capacity of 1,300,000 MT per annum of Ethylene

2) Samsung Engineering Company, South Korea, to construct its Ethylene Glycol Plant with a production capacity of 700,000 MT per annum (increasing overall Ethylene Glycol production capacity to more than 2,000,000 MT per annum).

3) Linde, Germany, to construct its Linear Low and High Density Polyethylene plants with a production capacity of 800,000 MT per annum, which will increase polyolefins production at Sharq to reach more than 1,600,000 MT per annum.

Mohamed Al-Mady, SABIC Vice Chairman and CEO said, "This Sharq expansion project will add 2.8m MT annually to SABIC production and will further enhance the Sharq position as the world's largest single producer of Ethylene Glycol.

This will also enhance the SABIC global ranking alongside the other global petrochemicals companies who produce this product.

SABIC is currently ranked 2nd and is expected to become number one once this project comes on stream.

SABIC is the world's 3rd largest producer of polyethylene and number four for polyolefins".

The agreements will cover engineering, procurement and construction of the plants at the Sharq affiliate in Al-Jubail, Saudi Arabia.

These will be complete by the first quarter of 2008.

The letters of intent were signed by Mr Mohammad Al-Jabri, Sharq President, with executive representatives from Stone Webster, Samsung Engineering Company and Linde.

Sharq is a joint venture equally owned by Saudi Basic Industries Corporation (SABIC) and SPDC, a Japanese consortium led by the government of Japan and the Mitsubishi group of companies.

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