MOSCOW (MRC) -- Saudi International Petrochemical Co (Sipchem) said on Wednesday its methanol affiliate will start receiving supplies of carbon dioxide feedstock from Saudi Aramco Shell Refinery (SASREF) in the first quarter of 2019, reported Reuters.
Sipchem said the long-term agreement is designed to improve efficiency at its plant in Jubail.
In December, the International Methanol Co (IMC) signed a contract with South Korea's eTEC E&C for work costing $144.6 MM expected to be completed in the fourth quarter of 2018.
The IMC-65% owned by Sipchem, with the rest owned by a group of Japanese companies - has an annual production capacity of 967,000 t of methanol.
Sipchem said in the statement on Wednesday the positive financial impact from the supply agreement will start from the first quarter of 2019.
As MRC wrote previously, on July 26, 2014, Sipchem commenced trial runs at a new ethylene vinyl acetate (EVA)/low density polyethylene (LDPE) swing plant. Located in Jubail Saudi Arabia, the plant has a production capacity of 200,000 mt/year.
Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC