Saudi Butanol gears up for Jubail plant trial operations

Updated 25 June 2015

Saudi Butanol gears up for Jubail plant trial operations

JUBAIL: Saudi Butanol Company (SaBuCo) is preparing to start trial operations at its largest butanol plant in Jubail in the third quarter of this year.
Planned to be carried out for around six months, the trial operations will test equipment and production efficiency through technical licensing and contracts.
SaBuCo is a joint venture of Saudi Kayan Petrochemical Company, Sadara Chemical Company — a joint venture between Saudi Aramco and Dow Chemical Company — and Saudi Acrylic Acid Company (SAAC), an affiliate of Tasnee and Sahara Petrochemicals.
The new plant is expected to produce 330,000 tons of n-butanol and 11,000 tons of iso-butanol on a yearly basis, with an estimated investment of SR1.93 billion.
This joint venture of local petrochemicals aims to create added economic value through the efficient use of natural resources in the Kingdom to provide a new product based mainly on the support and development of local manufacturing industries.
The three partners in the joint venture will have equal stake in production quantities for use in manufacturing industries or for sales in local and overseas markets.
The butanol project will strongly support the coatings industry in the Kingdom. Potential investors can use the n-butanol and its derivates to introduce a wide range of coating products for the local, regional and global markets.
Located at Tasnee's petrochemical complex in Jubail, the butanol plant will enhance global competitive advantages for the national petrochemical industry, and Tasnee's integrated acrylates complex which is the first of its kind in the region.
SAAC is the biggest beneficiary of butanol project and its production capacity of acrylic acid is estimated at 160 thousand tons per year.
Moreover, SAAC production capacity of acrylic acid contributed to raise the Middle East share by nearly 6 percent amid growing global consumption per year and fierce competition from global producers, particularly Chinese producers that have registered significant increases in the production capacities reached 700 thousand tons in 2007 and 2 million tons in 2014.
The Middle East acquires 2 percent of the total global energy amounting to 5.1 million tons in 2013. China and North America hold half of the global production with 25 percent each, Western Europe 22 percent, Eastern Europe 1 percent, South and Southeast Asia 6 percent and North Asia 19 percent.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”