Sabic inks technology licensing agreement with Germany’s Lurgi at Saudi Kayan

30-Aug-10

Saudi Basic Industries Corporation (SABIC) has signed an agreement with Lurgi GmbH, for the technology licensing and engineering that will allow SABIC to produce oleo-chemicals at its affiliate, Saudi Kayan Petrochemical Company (Saudi Kayan), following the completion of new facilities to be constructed in Jubail. Start up of the new production line is planned for the end of 2013 and will utilize renewable feedstock technology. “The feedstock used for this process is based on natural raw materials from renewable oils such as palm kernel oil and coconut oil. The use of renewable feedstock is part of SABIC’s overall commitment to sustainability and strong corporate citizenship,” said SABIC Executive Vice President, Technology & Innovation, Abdulrahman Al-Ubaid. “SABIC’s diversification into oleo-chemical products is in line with the company’s strategy and drive to increase its performance chemicals portfolio. SABIC’s expansion of the ethylene oxide derivatives business, with particular emphasis on ethoxylate surfactants, will further be strengthened through backward integration into natural fatty alcohols.” The new oleo-chemical plant will be the first of its type in the Middle East and includes an upstream natural acid unit, a wax-ester unit, a hydrogenation unit, a downstream natural alcohol fractionation and distillation line, as well as a complete glycerin line. The complex will be designed for the production of 83,000 tpa of distilled natural alcohols of various compositions that are commonly used in household and laundry products, plasticizers, lube additives, plastic industries, cosmetics and personal care.