MOSCOW (MRC) -- Saudi Kayan Petrochemical Company said on Monday that the Ministry of Energy had approved its request to increase Ethane allocation by a maximum of (30) MMSCFD based on the availability of Ethane from Gas production future projects, said Chemweek.
In line with the terms and conditions stated in the allocation letter, Saudi Kayan is required to submit a plan to implement conversion projects, substitute Crude Oil with Sales Gas, and to liaise with the Saudi Basic Industries Corporation (SABIC) to maximise the benefits of feedstock, according to a bourse filing.
Saudi Kayan will work with the ministry to develop a timeframe to start utilising the additional feedstock, which will be announced with its positive financial impact accordingly.
As MRC wrote earlier, Saudi Kayan conducted a 21-day scheduled maintenance at its ethylene glycol (EG) and ethylene oxide (EO) facilities at Jubail, Saudi Arabia, starting on 1 February, 2020. The company said that some of its other facilities that rely on EG and EO feedstocks would also undergo periodic maintenance and improvements.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
MRC