Oil Conversion to Petrochemicals Complex in Saudi Arabia
Saudi Aramco, Saudi Arabian Oil Company and SABIC, petrochemical manufacturing company in Saudi have recently signed a MoU (memorandum of understanding) for nearly $25Billion oil conversion into chemicals complex. Sources from the two firms have confirmed that they received the PMC (project management consultancy) bids for conversion of planned oil to the chemicals scheme. Bidders for project management consultancy contract are inclusive of
- Amec Foster Wheeler – UK
- WorleyParsons – Australia
- Jacobs Engineering – US
- Fluor – US
- KBR – US
According to the existing plans, the exclusive project converted nearly 235,000 barrels each day of Yanbu refinery in a combined refinery as well as petrochemicals complex. In addition, the exclusively combined petrochemical units are inclusive of an aromatics complex, pitch facilities, petroleum and isobutene coke, cumene, steam cracker and most importantly, mixed xylene.
Korean Companies Increase Investments in Petrochemicals Production
Hyundai Oilbank, GS Caltex, S-Oil and SK Innovation are amongst the four prominent Korean oil refineries. These companies are increasingly shifting their focus towards non-refining businesses from refining, thereby investing heavily in the petrochemical facilities inclusive of NCCs (naphtha cracking centers). The four refineries are taking immense efforts in ensuring enhancement of their petrochemicals production capacity. Sources from SK Innovation had revealed that the company’s ethylene production capacity has increased by over 1Million tons in 2018.
S-Oil is constantly working on doubling the production of paraxylene and benzene and currently is focusing on the expansion of its petrochemical business. Furthermore, the company is making heavy investments of nearly 4.8Trillion for building an ODC (olefin downstream complex) and RUC (residue upgrading complex). GS Caltex is producing ethylene of nearly 700,000 tons every year as well as polyethylene of nearly 500,000 tons at a MFC (mixed feed cracker) that would be completed by 2022 along with an exclusive investment of nearly 2Trillion.
The production of paraxylene, toluene and benzene by Hyundai Oilbank has tripled since the last decade. Most of all, this company has recently entered into collaboration with Lotte Chemical and has made a heavy investment of nearly 2.7Trillion for building a HPC (heavy petrochemical complex) based on feed that would support in producing polyolefins and olefins with the help of heavy fuel oils as feedstock.
Development of New Catalytic Reforming Units to Drive Production Sales of Mixed Xylene
Petron Corporation, largest oil refining as well as marketing company in Philippines recently announced its plans of investing in the catalytic reforming unit. This would hold as a major prospect for producing petrochemicals including xylene, toluene and mixed xylene for sale to export market. Petron is likely to finish the basic engineering design analysis on the new unit soon and investment decision will be made by first quarter of 2019. The company is taking immense efforts in elevating its position in the global business and the high sales volumes would be attributed towards Philippine and Malaysia operations.
A recent study by Future Market Insights on mixed xylene market indicates, the refining industries witnessing expansion of petrochemical business as global trend. In addition, oil refineries are majorly competing for the NCC investment.
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