By 2015, the Kingdom's ethylene and propylene capacities will rise to 16.52 million tpa and 6.55 million tpa respectively, with Saudi Kayan's commercial operation in 2011 set to contribute most to the increase, BMI said in its latest "Saudi Arabia Petrochemicals Report". Compared with 2010, total PE capacity will rise 20 percent to 8.86 million tpa, PP will rise 11 percent and PS, PET and PVC capacities will remain unchanged. Ethylene capacity in 2015 is forecasted to be more than double that of 2008 levels, with Jubail and Yanbu the focus of petrochemicals developments. The projections for petrochemical capacity are based on planned projects, but it is possible that some may not come to fruition as a result of the restriction on ethane feedstock and a possible lackluster recovery in the Chinese market – at a time of rising Chinese capacities, the report added. Joint ventures are being established to build and operate units aligned with Saudi Arabia's National Industrial Clusters Development Program, which aims to expand and diversify its manufacturing sector and create opportunities in downstream industries such as construction, automotive, electronics, medical technologies and appliances. SABIC seeks to use its basic petrochemicals projects as raw material for processing. The decision by Dow Chemical and Saudi Aramco to go ahead with the integrated $20 billion Sadara Chemical Company JV complex will significantly boost downstream chemicals growth going forward. The complex will include a cracker with capacities of 1.5 million tpa ethylene and 450,000 tpa propylene with feed comprising 55 percent ethane and 45 percent naphtha and will produce more than 3 million tpa of high value-added chemical products and performance plastics, including amines, glycol ethers, propylene glycol, polyether polyols, isocyanates and solution process LLDPE, LDPE and elastomers. BMI believes it unlikely that the target completion date of 2015 will be reached. The complex is envisaged to sustain downstream industries, such a wire and cable, packaging, automotive parts and consumer products. Similar projects were announced in mid-2011, largely directed as capitalizing on the growth in the Asian automotive industries, particularly tires. Kemya has also announced plans for an elastomers complex that will be built at the Kemya site. The complex will have capacity to produce more than 400,000tpa combined of butyl rubber, styrene butadiene rubber (SBR), butadiene rubber, ethylene propylene diene monomer rubber, thermoplastic specialty polymers, and carbon black. Sahara Petrochemicals and Saudi Arabian Mining Company (Ma'aden) is going ahead with a $750 million project at Jubail with capacities of 250,000tpa caustic soda and 300,000tpa EDC. SABIC and Mitsubishi Rayon have announced a new JV company to build and operate plants with methyl methacrylate (MMA) and polymethyl methacrylate (PMMA) capacities of 250,000 tpa and 40,000 tpa respectively. The proposed Saudi Japanese Acrylonitrile Company (Shrouq), a JV between SABIC, Asahi Kasei and Mitsubishi Corporation, will build and operate plants with capacity for 200,000 tpa of acrylonitrile and 40,000 tpa of sodium cyanide in Jubail.
