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AL-KHOBAR ExxonMobil Chemical and Saudi Basic Industries Corp (Sabic) have launched bids for the first package of their synthetic rubber project in Jubail, two sources at contractors said. The due date for storage tanks and spheres bids is Nov. 27. The plant will be located in Kemya, itself a joint-venture petrochemical plant between ExxonMobil and Sabic.

Spheres are pressurized tanks used for gases in their liquefied forms while tanks are atmospheric and used for petroleum, petrochemicals storage. The other packages consist of a metyl tertiary butyl ether (MTBE) plant and a halobutyl rubber plant, two contractors said adding that they expect to receive invitations to bid for these packages soon. ExxonMobil and Sabic first announced plans to build elastomers plants at their joint ventures in Yanbu and Jubail last year. The combined value of the project, which will have a production capacity of about 400,000 tons per year of carbon black, rubber and speciality polymers is estimated at $5 billion, Marc Granier vice-president of ExxonMobil Chemical in Saudi Arabia said last month. The implementation of the project, which would serve the tire industry in Saudi Arabia,
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awaits a final investment decision by 2010 or 2011, Granier said. ExxonMobil has more than doubled its global halobutyl capacity since 1995. It sees itself as a major supplier of halobutyl rubber to the global tire industry, according to its website. ExxonMobil did not respond to e-mailed questions and Sabics spokesman declined to comment. Meanwhile, Chinas huge demand for petrochemicals will partly be met by a new major petrochemical complex that will come on stream in the first quarter of 2010, but this is not expected to create ripples in the regional markets, industry sources said on Wednesday. The project in Tianjin, northern China a joint venture between petrochemical giants Sabic and Sinopec is expected to produce 3.2 million tons/year of chemical products. The $2.7 billion complex comprises a 1 million ton/year ethylene cracker and eight downstream units. Other products will include polyethylene (PE), ethylene glycol (EG), polypropylene (PP), butadiene (BD), phenol and butene-1. Chinas ethylene imports in the first nine months totaled 786,880 tons. Reuters

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