MOSCOW (MRC) -- Saudi Arabia's Sadara Basic Services Company has cut run rates at 350,000 mt/year low density polyethylene (LDPE) and 750,000 mt/year of high density/linear low density polyethylene (HDPE/LLDPE) swing units, in Jubail by 16%, due to the Saudi oil facility attack that happened on Saturday which reduced the company's supply of feedstock, reported S&P Global with reference to the company's statement on Monday.
The company is currently working to evaluate the financial impact, according to the statement.
Drone attacks on Saudi Aramco's Abqaiq processing facility and the Khurais field on Saturday morning have led to production cuts of around 5.7 million b/d or half of the company's production capacity, according to the kingdom's Minister of Energy, Prince Abdulaziz bin Salman.
As MRC wrote previously, in December 2015, Saudi Arabia's Sadara Basic Services, fully owned by Sadara Chemical, started at its polyethylene (PE) plant in Jubail Industrial City II. The plant is designed to produce 375,000 metric tons per year of products used in specialty applications, such as the manufacture of food-grade plastics, industrial and consumer packaging and health and hygiene films.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven months of 2019, up by 9% year on year. Shipments of all PE grades increased.
Sadara Chemical is a USD20 billion petrochemical joint venture between national oil giant Saudi Aramco and Dow Chemical .
MRC