SAUDI ARABIA - Universal Petrochemicals Company (Unichem).

This Saudi private venture, together with Phenolchemie of Germany, Herdilia Chemicals of India and other investors, has a 260,000t/y cumene plant in Yanbu' on stream since early 2000. The partners have invested SR225m ($60m) in the venture, which uses benzene feedstock from Ibn Rushd's aromatics complex, one of SABIC's units (see DT No. 18). The plant uses Q-Max technology of UOP. It is exporting most of its output, used to produce phenol and acetone for building

materials, carpets, cosmetics and medicines.

Phenolchemie, the largest phenol producer in the world, takes the biggest portion of the output. Herdilia, having a new 100,000 t/y phenol plant at Dahej in the Indian province of Gujarat, lifts some cumene as well.

National Petrochemical Industries Co (Natpet) is a local consortium including two major Saudi groups Alujain Corp. (the leader) and Xenel Industries. Natpet has a 50-50 venture, called Teldene, with Shell-controlled Montell International of Europe, which is having an integrated complex built in Jubail to produce 350,000 t/y of propylene to yield polypropylene (PP). To cost about $530m and to be on stream in late 2003, this will consist of a propane dehyrogenation plant to produce the propylene by using technology from UOP. It will then use the propylene as a feedstock for a 250,000t/y PP plant at the same site. Montell's Spheripol technology is to be used to produce all grades of PP resin. Basic engineering and designs for the complex have been done by Tecnimont of Italy, which now is the project manager. Bids for the EPC contract were submitted in mid-December 1998 by Tecnimont, JGC Corp. of Japan, Daelim of South Korea and CPCI of Taiwan - but the award has since been delayed due to a BASF/Shell plastics merger.

Propane supply contracts have been signed with Saudi Aramco. The PP is to be marketed in local and regional outlets, and internationally by a BASF/Shell unit called Basell. (Montell was set up in 1995 as a 50-50 JV after the merger of the polyolefins ventures of Montedison of Italy and Shell. Later Shell took control of Montell. Now Montell is a unit of Basell which combines the commodity plastics units of BASF and Shell.