Riyadh – Mubasher: Saudi Arabia-based Jubail United Petrochemical Co. signed a joint venture (JV) agreement with the South Korean firm Samsung Engineering for the engineering, procurement, and construction services for the third ethylene glycol plant.
Jubail United Petrochemical Co. is a 75% subsidiary of the Saudi Basic Industries Corp’s (SABIC).
The plant’s location will be in SABIC’s unit complex in Jubail.
The project’s estimated cost amounted to SAR 3.3 billion and it will self-financed from the firm’s resources , in addition to external debts, according to a statement on Wednesday to the Saudi Stock Exchange (Tadawul).
The plant’s production capacity will hit 700,000 metric tonnes of monoethylene glycol on annual basis.
Monoethylene glycol is the primary feedstock for polyester manufacturing and anti-freeze.
The plant's establishment will end in the fourth quarter of 2020 and experimental operation is expected to be during H1-21.
The project is forecasted to impact positively on SABIC’s consolidated financial statements.
SABIC’s stock inched up 0.29%, closing Wednesday at SAR 101.70.
