$25 Million Ransom by Somali Pirates

Somali pirates have demanded $25m ransom in return for a hijacked oil tanker hijacked from Saudi owner of the Liberia-flagged MV Sirius Star. The pirates had given the Saudis 10 days to comply. 

The Sirius Star is the largest ship ever hijacked known as a very large crude carrier (VLCC), had been heading for the US via the Cape of Good Hope at the southern tip of Africa. Sirius Star standsat 1,800 feet now anchored off Somalia near a pirate stronghold Haradheere. The sea traffic operating off the Horn of Africa has been attacked more than 90 vessels with more than £60m ($40m) from ransom demands were made.

Plastic Futures Available December in Dubai

The Dubai Multi Commodities Centre (DMCC) and the Dubai Gold and Commodities Exchange (DGCX) will be launching the first ever Middle East and Asia plastics futures contracts targeted to be live in December 2008. The products for the Future Exchange will be polypropylene (PP) and linear low density polyethylene (LLDPE). More plastic derivatives will be inlcuded in the near future.

The futures will be backed up by physical deliverable in warehouses. DMCC selected various locations for the warehouses including Jebel Ali in Dubai, Busan and Gwang Yang in South Korea, Pasir Gudang and Tejung Pelapas in Malaysia, and Singapore.

Natpet's Yanbu Project Gets US$ 125 Million Loan

Saudi National Petrochemical Industries Company (Natpet) has signed a financial agreement with Saudi General Investment Fund for a $125m loan which will be used to finance the company project in Yanbu.

The project consists of a Spheripol PP technology from Basell petrochemical plant with capacity of 400,000 tonnes/year propylene and polypropylene.

Jubail Petchem Company Established by Aramco and Total

Saudi Arabian Oil Co (Saudi Aramco) and France’s Total have signed a joint venture Petrochemical Co for a 400,000 bbl/day capacity Jubail Refining. The refinery is expected to begin operations by 2012 producing diesel and jet fuels, 700,000 tonnes/year of paraxylene, 140,000 tonnes/year of benzene and 200,000 tonnes/year of polymer-grade propylene.

The refinery is in its close proximity to the Arabian heavy crude supply system and closeby to the Jubail Industrial City's King Fahad Industrial Port, power and water grids, and residential areas.

Progress Heating Up at Al-Jubail Petrochemical Complex by Saudi Kayan

Saudi Kayan Petrochemical Co (Kayan) who is reportedly going worldwide scouting for employees has awarded all the contracts to build its mega petrochemical complex which now stands at 73% progress.

The petrochemical complex at Al-Jubail will produce 6m tonnes/year of petrochemical products including ethylene, propylene, monoethylene glycol (MEG), polypropylene and other chemicals due to be commissioned late this year.

SABIC Ar-Razi New Methanol Plant On-Stream in May

Saudi Basic Industries Corp (SABIC) joint venture mega methanol plant in Saudi Arabia, Ar-Razi 5 is expected to come on stream in May as per schedule. Rumours have spread that there was insufficient gas for the plant lagging the on-stream date.

Saudi Methanol Co, a joint venture of SABIC and a Japanese consortium will have a total capacity of methanol 5.7 million tonnes/year if the new mega methanol chemical plant is on-stream at Al-Jubail.

$1 Billion Petrochemical Complex Project by Saudi OSOS

Saudi Arabia's Osos Petrochemicals is planning to develop its estimated $1bn polybutylene terephthalate (PBT) petrochemical complex. The earlier plan was to include Saudi Basic Industries Corp (Sabic) for a 35% stake but SABBIC withdrew from the project.

The chemical plant will be located at Yanbu on the Red Sea coast with capacity of 60,000 tonnes/year of PBT, 50,000 tonnes/year of butanediol, 3,500 tonnes/year of tetrahydrofuran, and 85,000 tonnes/year of maleic anhydride acid. For the cost of $1 billion for the construction, analysts are considering the cost to be a bargain.

The polybutylene terephthalate (PBT) complex is in commercial phase with EPCC (engineering, procurement and construction contractors) for award of contracts in the end of the third quarter of 2008. A few contractors including Oslo-based Aker Kvaerner with China's Sinopec, and South Korea's GS Engineering & Construction, Samsung Engineering Company and Hanwha Engineering & Construction are currently in the bidding process for the award of construction contract.

Saudi Arabia's Ar-Razi 5th Methanol Plant To Be Commission

Saudi Methanol Company (Ar-Razi), plans to commission its fifth mega-methanol plant at Al Jubail, Saudi Arabia late April of 2008 with commercial operations in June.

This fifth mega-methanol plant will be in addition to Ar-Razi current four methanol plants at Al Jubail, two with a capacity of 700,000 mt/year each, and two that are capable of producing 850,000 mt/year each.

ABS Plant in Al-Jubail by Saudi Petrokemya

SABIC affiliate Arabian Petrochemical Co (Petrokemya) is on its way to build an acrylonitrile butadiene styrene (ABS) petrochemical plant with a capacity of 200 ktpa at Al-Jubail complex.

This come quick after SABIC Innovative Plastics, formerly the US' GE Plastics, which SABIC (Saudi Basic Industries Corp) acquired last year. The ex-GE Plastics is also providing process technology for the plant.

Saudi Chemanol Floating IPO for Expansion

Chemanol, a Saudi Arabia’s Methanol Chemicals Co is looking at ways to finance $302m facility to fund the company’s expansion plans most probably by an initial public offering (IPO) for a sale of 50% of Chemanol shares for $200m.

Saudi Arabia's Methanol Chemicals Co is a major producer and international supplier of premium grade formaldehyde and derivative products, which previously known as Saudi Formaldehyde Chemical Co.

The$302 facility will expand Chemaol's operations, to convert gas from raw materials to use internally and to decrease its dependance on Saudi Aramco. Currently, Chemaol receives gas feed from Saudi Aramco. The IPO will be arranged by SAAB, SAMBA, Riyadh bank, Saudi Hollandi Bank, Alahli bank and Arab Banking Corporation (Bahrain).