Saudi Arabia will be setting up what is tipped to be the worlds largest and butanol plant. The US$517 million project will be built in the east coast of the kingdom in Jubail Industrial City and be operated by National Industrialization Company (Tasnee).
The new entity will serve Saudi Arabias burgeoning paints and coatings industry with the plant itself expected to be up and running in the first quarter of 2015.
A three-way shareholders agreement between Saudi Basic Industries Corp. (SABIC) manufacturing affiliate, Saudi Kayan Petrochemical Company (SAUDI KAYAN) and the Saudi Aramco-Dow Chemical joint venture, Sadara Chemical Company (Sadara), established the plant under the name Saudi Butanol Company.
Under this agreement the three partners will have equal share in the production, which will be used for downstream industries as well as sold in the domestic and global markets. SABIC will be marketing the SAUDI KAYAN share of the butanol plant both internationally and locally. The design capacity of the plant will be 330 thousand tonnes per year of normal butanol material and 11 thousand tonnes per year of iso butanol.
SAUDI KAYAN is currently working on developing export and import units for the project at the King Fahd Industrial Port in Jubail at an estimated cost of $48 million. The units are intended to facilitate the export of SAUDI KAYANs share of the production. The units may also be used for exporting the other partners butanol share according to specific agreements for this purpose.
SAUDI KAYANs share in the butanol project as well as the export and import units are planned to be self-financed through the company's own resources and third parties, the company said in a statement.