Riyadh - Saudi Basic Industries Corp. (SABIC) and OSOS Petrochemicals (currently under formation) signed a memorandum of understanding (MOU) 16 Jan concerning the $1000-million OSOS Petrochemicals project being planned at Yanbu industrial city in Saudi Arabia.
OSOS Petrochemicals will produce the polyurethane intermediate butanediol, among a wide range of other chemicals, a SABIC announcement said.
Under the MOU, SABIC will complete its initial exploration of the project within two months, prior to any final agreement. SABIC will hold 35 percent of the joint venture, the statement added.
Products at Yanbu will include: polybutylene terephthalate (PBT), 60 kilotonnes; butanediol (BDO) 50 kt; tetrahydrofuran (THF), 3.5 kt; malic anhydride acid (MAN) 85 kt.
According to the major Saudi group, PBT is used in various applications including electronic chips, the automotive industry and computer and communications equipment. SABIC's share of the total global PBT production will be 15 percent.
BDO is an intermediate used in making polyurethanes and PBT. THF is used to make polytetramethylene ether glycol (PTMEG), a major ingredient in spandex polyurethane fibres. THF is also used drug compounds and as a solvent, while the MAN produced will be used within the plant, SABIC said.