PetroRabigh’s expansion project delayed for 9 months
by ChemOrbis Editorial Team - content@chemorbis.com
According to media reports, the completion of Saudi Arabia’s PetroRabigh’s expansion project known as Rabigh Phase II has been delayed for nine months, pushing the company to ask for more cash from shareholders. The project is now expected to be completed in September 2016. PetroRabigh is a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical.
Due to the delay, total costs of the project rose by 1 billion riyals ($266.4 million) to 31 billion riyals ($8.3 billion). PetroRabigh had already signed a loan agreement worth around 19.4 billion riyals ($5.2 billion) for the expansion project. The company reportedly will borrow 7.5 billion riyals ($2 billion) from the Japan Bank for International Cooperation and 4.9 billion riyals ($1.30 billion) from Saudi Arabia’s state-owned Public Investment Fund.
Under the Phase II expansion project, the company will expand its existing ethane cracker’s capacity and build a new aromatics complex, which is set to process more than 2.7 million tons/year of naphtha to make petrochemical products. The ethane cracker expansion is now slated to be completed in the first quarter of this year.
Due to the delay, total costs of the project rose by 1 billion riyals ($266.4 million) to 31 billion riyals ($8.3 billion). PetroRabigh had already signed a loan agreement worth around 19.4 billion riyals ($5.2 billion) for the expansion project. The company reportedly will borrow 7.5 billion riyals ($2 billion) from the Japan Bank for International Cooperation and 4.9 billion riyals ($1.30 billion) from Saudi Arabia’s state-owned Public Investment Fund.
Under the Phase II expansion project, the company will expand its existing ethane cracker’s capacity and build a new aromatics complex, which is set to process more than 2.7 million tons/year of naphtha to make petrochemical products. The ethane cracker expansion is now slated to be completed in the first quarter of this year.
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