Page 11 - DMEA week 23

DMEA PetroChemiCaLs DMEA
INEOS joins the party at Jubail 2
middLe east
UK-BASED INEOS announced last week the signing of an memorandum of understand- ing (MoU) with Saudi Aramco and French super-major Total to build three new plants in Jubail in the kingdom’s Eastern Province.
e US$2 billion deal covers the construction of a 425,000 tonne per year (tpy) acrylonitrile plant, a 400,000 tpy unit for linear alpha ole ns (LAO) and a “world-scale” poly alpha olefin (PAO) facility, with all scheduled to begin pro- duction in 2025. e new units will be part of the Jubail 2 complex and will be located alongside Aramco and Total’s SATORP re nery.
In a statement, INEOS Nitriles CEO Paul Overment said: “Global demand for acryloni- trile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy e cient materials such as ABS, composites and carbon bre.” e news follows the signing of an MoU between Aramco and Total and South Korea’s Daelim in January to build an 80,000 tpy poly- isobutylene (PIB) plant.
The latter facility will use feedstock from the so-called Amiral petrochemicals complex planned by the Saudi/French team adjacent to their 440,000 bpd SATORP re nery, commis- sioned in 2014.
FEED studies on the derivatives unit, which
will use the South Korean company’s proprietary PIB technology, are due to start this month and conclude by the end of 2019.
e product – used in a range of industrial applications – would thereby be produced in the kingdom for the rst time.
When the SATORP partners announced plans to develop the Amiral complex, they also stated the intention of attracting US$4 billion in investment in additional petrochemicals and speciality chemical facilities in Jubail and elsewhere.
is will feed o the estimated US$5 billion main plant, which will comprise a 1.5 million-tpy mixed-feed cracker and derivatives units, and be completed in 2024.
Aramco’s nearby Sadara Chemical Co. JV with the US’ Dow Chemical Co. is also partic- ipating alongside the government in the devel- opment of an adjacent chemicals and conversion park, as Riyadh attempts to expand the sector as a means of local job creation.
Sadara was commissioned in 2017 to produce around 3 million tpy of petrochemicals and, like Amiral, is based partly on output from the SATORP unit. Aramco and Total own stakes of 62.5% and 37.5% respectively in both SATORP and Amiral.™
Wood awarded Duqm petchems FEED
middLe east
UK-BASED services rm Wood plc has been awarded a front-end engineering design (FEED) contract for a petrochemicals complex at Duqm on Oman’s Al-Wusta coast. The facility will include a steam cracker and units for hydrogen, syngas, methanol production.
e award was made by Duqm Re nery and Petrochemicals Industries Co. (DRPIC), the project company for the integrated downstream facility being developed by a 50:50 partnership of Oman Oil Co. (OOC) and Kuwait Petroleum International (KPI).
e petrochemical plant will be constructed alongside the 230,000 bpd Duqm Refinery, which is now 20% complete, with work on three engineering, procurement and construc- tion (EPC) jobs ongoing ahead of an unlikely 2020/2021 completion date.
Wood’s package also covers the construction of an NGL extraction facility in central Oman as well as a 230-km pipeline to carry feedstock to the petrochemical facility, with all of the facil- ities coming under the purview of OOC and Oman Oil Re neries and Petroleum Industries Co. (ORPIC). A 1.6 million tonnes per year (tpy)
ethylene processing cracker is also being con- structed to process LPG, naphtha and o -gases and NGL.
e nancing of Duqm is the largest project nancing in the sultanate’s history with the re n- ery alone now expected to cost in excess of US$8 billion, well above the original budget of US$6-7 billion. In January, Kuwait’s Supreme Petroleum Council (SPC) Kuwait Petroleum Corp. (KPC) gave approval for the allocation of US$2 billion of funds for the re nery.
At that point, Duqm Re nery CFO, Mubarak al-Naamany, said in a statement that the debt-eq- uity ratio was 55%, implying a total project cost of around US$8.4 billion.
Signed up borrowing currently includes US$700 million from UK Export Finance (UKEF), US$500 million from Spain’s CESCE and US$600 million from Export-Import Bank of Korea (KEXIM).
Oman is Middle East’s second largest LNG exporter, transporting 8.2 million tonnes to overseas customers in 2017, with production buoyed by the September 2017 start-up of BP’s onshore Khazzan eld.™
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