Saudi Kayan Gets More Gas For Making Ethylene

The Saudi oil ministry has allocated an extra 10 million cubic feed a day (scfd) of ethane from July 1, Kayan said.



Saudi Arabia’s Oil Ministry has allocated more natural gas to Saudi Kayan Petrochemical Co for it to expand ethylene production at its petrochemical complex in Jubail, the company said on Sunday.

The ministry has allocated the affiliate of Saudi Basic Industries Corporation (SABIC) an extra 10 million cubic feed a day (scfd) of ethane from July 1, Kayan said in a bourse statement.

The extra gas will allow it to raise ethylene production capacity by at least 93,000 tonnes a year and ethylene oxide capacity by 61,000 tonnes a year by the second quarter of 2017, it said.

The additional ethane supply will also allow the company to reduce its consumption of butane gas, it said.

As part of the same deal, SABIC will also reduce the marketing fees it charges Saudi Kayan, which will save the company 280 million riyals ($74.6 million) this year and 600 million riyals a year once its projects are completed, it said.