ExxonMobil and Sabic to build a world scale synthetic rubber greenfield plant in Middle-East
Al-Jubail Petrochemical Company (Kemya) is a 50/50 joint venture between Saudi Basic Industries Corporation (SABIC) and Exxon Chemical Arabia Inc., an affiliate of ExxonMobil Chemical Company.
The two companies have collaborated closely since the joint venture was established in 1980, producing polyethylene, ethylene and propylene.
The new synthetic rubber project represents a significant broadening of Kemya’s product portfolio.
The fast expansion of the transportation activities in the Middle East and Asia-Pacific region has created strong demand for synthetic rubber products.
The new world-scale Kemya elastomers project will help meet this ever-growing demand.
In November 2008, Sabic and ExxonMobil Chemical had signed an agreement to undertake a feasibility study for establishing a new elastomers plant at Kemya facility.
Continental, ExxonMobil and Goodyear technologies
Technology licence agreements have also been finalised with Continental Carbon Company for its carbon black production technology.
Goodyear Tire & Rubber Company has been contracted to provide its SBR and polybutadiene rubber technology.
The facility will rely on commercially competitive, high-impact technologies, including proprietary ExxonMobil EPDM, thermoplastic elastomer (TPE) and halobutyl rubber technologies.
Fluor, Jacobs and Mitsui completed the FEED
In May 2011, Sabic and ExxonMobil awarded the front end engineering and design (FEED) contracts for the process units of the project to Jacobs Engineering and Mitsui Engineering & Shipbuilding.
Fluor Transworld Services was awarded the FEED contract for associated support facilities.
In February 2012, the Saudi Arabia’s Royal Commission approved the project with an estimated capital expenditure of $2bn, but today the total amount of capital expenditure awarded has reached $3.4 billion.
The Al-Jubail Kemya Saudi Elastomers facility will have the capacity to produce up to 400,000 t/y of synthetic rubber including:
- Halobutyl
- Styrene butadiene
- 102,000 t/y Polybutadiene
- Ethylene propylene diene monomer (EPDM) rubbers
- Thermoplastic specialty polymers
- 50,000 t/y Carbon black
The Kemya Saudi Elastomers project will be integrated with the existing Kemya Al-Jubail complex and completion is anticipated in 2015.
ExxonMobil and Sabic select Daelim, Technip and Tecnicas Reunidas for EPC contracts
Kemya has awarded a total of six packages for the engineering, procurement, and construction (EPC) contracts for the elastomers facility to: Daelim Industries, Technip, and Tecnicas Reunidas.
The project will be implemented via EPC lump sum turnkey mode.
Daelim won the package 3, worth $ 710 million, to construct indirect support facilities and auxiliary facilities (utilities & offsites) for the Kemya Saudi Elastomers Project.
Technip was awarded the Halobutyl unit to produce 110,000 t/y and will execute the contract from its Abu Dhabi office in UAE.
