Canada's Acetex signs $1 billion Saudi joint petrochemical venture
Saudi Arabia's National Petrochemical Industrialization Company (Tasnee Petrochemicals) has finalized a definitive joint venture with Canada's Acetex Corporation regarding the construction of acetic acid, vinyl acetate monomer (VAM) and methanol projects in Jubail.
The investment in these projects is estimated at one billion dollars, stated a press release. The projects will create approximately 800 opportunities for permanent direct and indirect employment and several thousand man-years of employment during construction. Saudi Aramco has allocated the required amount of natural gas for this industrial complex.
Acetex will own 50 percent of the acetyls company and 25 percent of the methanol company. The projects will be located at the petrochemical complex site of Tasnee Petrochemicals, an affiliate of National Industrialization Company), in Jubail Industrial City, Saudi Arabia, with an annual production capacity of approximately 500,000 tons of acetic acid, 275,000 tons of VAM and 1.8 million tons of methanol, stated a press release. It is expected that production will begin in 2007.
Acetex, in cooperation with Tasnee Petrochemicals, will be responsible for the marketing of the acetyls products and will integrate this new business with the existing acetyls business into one global marketing organization. Acetex intends to enter long-term methanol supply agreements with the Joint Venture to cover its methanol requirements in Saudi Arabia and Europe.
Tasnee Petrochemicals was established by and is majority owned by National Industrialization Company (NIC) with the participation of a number of strategic partners including Gulf Investment Corporation (GIC), Saudi Pharmaceutical & Medical Appliances Co. (SPIMACO) and National Industries Group (NIG). Tasnee Petrochemicals established its first plant in Jubail for the production of about 500,000 tons of propylene and polypropylene annually which is currently under start up. — (menareport.com)
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