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Al Jubail petrochemical complex owners outline $1 billion investment

By OGJ editors
HOUSTON, Apr. 11 -- Chevron Phillips Chemical Co. LLC (CPChem) and Saudi Industrial Investment Group (SIIG) plan a $1 billion addition to their existing petrochemical complex in Al Jubail, Saudi Arabia.

Startup is expected in 2006. A benzene unit will be expanded, while units for new products at the complex will be added that include ethylbenzene, styrene, and propylene. The styrene unit will be 600,000-700,000 tonnes/year, and capacities of the other planned units were not disclosed.

The participants expect that most of the styrene will be exported from the Persian Gulf region. Other products and coproducts will be marketed locally.

CPChem is a joint venture between ChevronTexaco Corp. and Phillips Petroleum Co. CPChem produces olefins and polyolefins and supplies aromatics, alpha olefins, styrenics, and specialty chemicals.

SIIG is a consortium of several Saudi companies focused on industrial investment in the petrochemical industry.

"Our strategy has been to build world-scale facilities with access to advantaged feedstocks and large, growing markets," said Mike Parker, CPChem's senior vice-president, aromatics and styrenics.

The existing Saudi Chevron Phillips facility, which started up in 2000, currently produces benzene, cyclohexane, and gasoline. CPChem and SIIG recently announced a 60,000 tonne/year expansion of the cyclohexane unit.

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