Petro Rabigh Cracker Passes Key Completion Test
Petro Rabigh announced on 4 December that its high olefins fluidized catalytic cracking unit (HOFCC) has passed a significant completion test. The HOFCC is a crucial part of the Petro Rabigh operations because it integrates refining and petrochemical activities. Completing the test guarantees stable and optimized operations and will positively affect the company’s financial results as early as the fourth quarter of this year, said Petro Rabigh. Certain completion tests must also be passed in a given time frame in order to comply with the project financing agreements.
The Petro Rabigh sponsors, Saudi Aramco and Sumitomo, on 2 March 2006 signed an agreement with lenders to receive a $1.74bn commercial loan, $600mn of Islamic funding, making total debt $5.84bn (including loans from the Japan Bank for International Cooperation – JBIC – and Public Investment Fund – MEES, 6 March 2006). Once all of its completion tests are passed, the sponsor guarantees can fall away, which will allow the sponsors to provide completion guarantees for Phase II of the Petro Rabigh project. Petro Rabigh plans to seek financing for its Phase II project, which is to cost around $5-6bn, sometime in the second quarter of 2012 (MEES, 31 October).
Alujain’s NATPET Completes Reliability Test
Alujain said that its subsidiary NATPET propylene and polypropylene complex in Yanbu' industrial city has completed its lender-mandated 30 days reliability test. It ran the complex at 99%, with the propane dehydrogenation plant (PDH) achieving design capacity of 50 tons/hour and reaching the highest monthly record of production since the start up in 2008. Last year the PDH plant was operating at 85.5% of capacity, but the rate may slip to 60.3% this year due to turnarounds (major plant maintenance) of almost two months. NATPET has fixed the problems and the plant is now running smoothly. It is expected to run at capacity next year, the company said.
NATPET is currently working to establish three downstream projects in Yanbu', using polypropylene as a feedstock. A geotextiles plant is being implemented by NATPET and Low & Bonar. Regional and global demand is increasing for geotextiles, which are permeable fabrics widely used in infrastructure and civil engineering applications, such as roads and building. The second project is expected to be finalized and signed in early 2012. For the third, discussions are ongoing with a proposed partner, said Alujain.
SAMAPCO Secures $360Mn Bridge Loan
Sahara & Ma'aden Petrochemicals Company (SAMAPCO), an affiliate of Sahara Petrochemicals Company and Ma'aden, has secured a SR1.35bn ($360mn) loan from local lenders SABB and Banque Saudi Fransi. The two banks are providing 50% apiece. The short term bridge loan will be repaid once SAMAPCO finalizes the long term financing agreements for its caustic soda and ethylene dichloride (EDC) project. Located in Jubail Industrial city it is a 50:50 joint venture between the two companies. Germany’s Uhde will provide process technology to the project, which is expected to be completed by the end of next year. It will have a production capacity of 250,000 tons/year of concentrated caustic soda and 300,000 t/y of EDC.
Copyright MEES 2011.
