Sabic lets contract for AR-RAZI expansion

By OGJ editors

HOUSTON, June 7 -- Saudi Basic Industries Corp. (Sabic) affiliate Saudi Methanol Co. (AR-RAZI) has awarded the engineering and construction contract for its world-scale AR-RAZI 5 methanol plant in Jubail Industrial City to Japan's Mitsubishi Heavy Industries. The 1.7 million tonne/year plant is scheduled to go on stream in first quarter 2008.

Sabic said a single production line will use oxygen as a burning medium to achieve a high production capacity and significantly cut construction and operation costs.

With an existing capacity of 3 million tonnes/year, AR-RAZI is the largest single methanol production complex in the world, Sabic said. The complex will have total capacity of 5 million tonnes/year following completion of the project.

Sabic and a Japanese consortium led by Mitsubishi are 50-50 owners of AR-RAZI.