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Saudi Butanol Company officialy began to work

Staff writer ▼ | July 5, 2013
The Saudi Butanol Company (SaBuCo), which will be building the world's largest butanol plant in Jubail, Saudi Arabia, is now officialy registered by the Saudi Ministry of Commerce and Industry.
Saudi Butanol Company
Saudi Butanol CompanyThe Saudi Butanol Company (SaBuCo), which will be building the world's largest butanol plant in Jubail, Saudi Arabia, is now officialy registered by the Saudi Ministry of Commerce and Industry.


At its first meeting in Jubail recently, the SaBuCo board observed that the new joint venture was a reflection of the strong cooperation between three leading Saudi petrochemical companies and their commitment to create economic value through efficient and effective utilization of the Kingdom's natural resources.

The three project partners are 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), owned by TSOC, an affiliate of Tasnee Company and Sahara Petrochemicals Company.

The partners are now in the process of executing agreements to further consolidate the partnership and business collaboration. The agreements cover several key elements, including financing, tolling, operations & maintenance, engineering & procurement, construction, project management consulting, and technology licensing.

With an estimated investment of $517 million, SaBuCo will build the first ever butanol plant in the Middle East and its products will support the continued growth of the paints and coatings industry in Saudi Arabia. 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.

"We are happy at the success all of us have achieved in arriving at a workable business arrangement. It was only due to the dedicated efforts and teamwork on the part of all the partners in all areas that we have been able to make the project a reality," said Mazyad Al-Khaldi, Saudi Kayan president.

"This is another example of success through teamwork and collaboration. We are pleased to team up with SAUDI KAYAN and SAAC in this joint venture to create further downstream economic value in Saudi Arabia from butanol-based products," said Ziad Al-Labban, Sadara CEO.

"We greatly appreciate the opportunity to collaborate with SABIC/SAUDI KAYAN and Sadara and their trust in TASNEE to build and operate the joint butanol plant on behalf of the partners. We can jointly benefit from the economies of scales which will enhance our national petrochemical industries' competitiveness in the world," Saleh Al-Nazha, TASNEE CEO and SAAC chairman, who has been named the General Manager of the new company.


 

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