Sabic awards EG plant contract to Toyo

Saudi Basic Industries Corporation (Sabic) has awarded a contract for the construction of an Ethylene Glycol (EG) plant to Toyo Engineering of Japan.

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By  Patrick Phelvin Published  January 8, 2004

Saudi Basic Industries Corporation (SABIC) has awarded a lump sum turnkey contract for the engineering, procurement and construction of an Ethylene Glycol (EG) plant to Toyo Engineering Company of Japan. The plant will be constructed at the Jubail United Petrochemical Company (United) in Saudi Arabia. The plant will have capacity of 630,000mt/y and is expected to go on stream by the second quarter of 2006. This is in addition to the existing 575,000mt/y EG plant that is currently under construction at United. The new plant will boost SABIC’s position one of the leading global producers of EG, and help enhance the company’s competitive position both worldwide and in the Middle East. By 2006, SABIC’s total EG production is expected to reach 3.5 million mt/y — meeting over 20% of global demand. Out of this, 1.5 million mt will be produced at Eastern Petrochemical Company, Al-Jubail, 1.20 million mt at United and 800,000 mt at the Saudi-Yanbu Petrochemical Company, Yanbu. Ethylene Glycol is the primary feedstock for polyester manufacturing. It is used in anti-freeze, marine engines, x-rays and luggage.

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