01 July 2013

SAUDI Butanol Company (SaBuCo) has received the go-ahead to build the first ever butanol plant in the Middle East at an estimated cost of $517 million in Jubail,
Saudi Arabia.

SaBuCo, which was recently registered with the Saudi Ministry of Commerce and Industry, said it will support the continued growth of the paints and coatings industry in Saudi Arabia, on commencement of production.

SaBuCo is a joint venture between three leading petrochemical companies – Saudi Kayan Petrochemical Company (Saudi Kayan), a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic); Sadara Chemical Company (Sadara), a joint venture by Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow); and Saudi Acrylic Acid Company (SAAC), owned by TSOC, an affiliate of Tasnee Company and Sahara Petrochemicals Company.

The butanol plant will be located at Tasnee’s Petrochemical Complex in Jubail Industrial City and will also be operated by Tasnee. The design capacity of the plant, which is scheduled to go on stream in 2015, is 330,000 tonnes per year (tpy) of n-butanol and 11,000 tpy of iso-butanol.

The partners are now in the process of executing agreements that cover financing, tolling, operations and maintenance, engineering and procurement.

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