Saudi Butanol Co. (SaBuCo), which will build the world's
largest butanol plant in Jubail, Saudi Arabia, was recently
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 country's natural resources.
The three project partners are Saudi Kayan Petrochemical Co., a manufacturing
affiliate of the Saudi Basic Industries Corp. (SABIC); Sadara
Chemical Co.(Sadara), a joint venture developed by Saudi
Arabian Oil Co. (Saudi Aramco) and Dow Chemical Co.; and Saudi
Acrylic Acid Co. (SAAC), owned by TSOC, an affiliate of Tasnee
Co. and Sahara Petrochemicals Co.
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 and maintenance, engineering and
procurement, construction, project management consulting and technology licensing.
A celebration to mark the official formation of the company
was held in Riyadh recently by the three project partners. While thanking the
Ministry of Petroleum and Mineral Resources and the Ministry of
Commerce and Industry for its continuing support, they pledged
to further expand and deepen their cooperation to promote
development and diversification of Saudi Arabia's economy.
With an estimated investment of $517 million, SaBuCo will
build the first 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
onstream in 2015, is 330,000 metric tons per year (metric
MMtpy) of n-butanol and 11,000 metric MMtpy of isobutanol.
Saleh Al-Nazha, TASNEE CEO and SAAC Chairman, said that the
butanol plant will provide additional integration to SAAC's acrylates
complex, which is the first complex of its kind in the
As per an earlier agreement signed in December 2012, the new
butanol plant will be located at Tasnee's Petrochemical Complex in Jubail
Industrial City and will also be operated by Tasnee.
It will open new job opportunities of around 200 direct and
indirect positions for Saudi citizens.