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Jamal Malaikah, president and COO of Saudi Arabia’s newest polypropylene producer, NatPet, talks exclusively to Petrochemicals Middle East.
The huge number of petrochemicals projects launched in Saudi Arabia between 2005 and 2006 affected the commercial start-up of many companies that saw delays as a result of a lack of qualified contractors, construction materials and a number of other factors.
One of those affected companies has been National Petrochemical Industrial Company (NatPet), which is headquartered in Jeddah.
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The company opted in 2005 to sign a contract on a lump sum turnkey (LSTK) basis for its project with a number of international contractors. It signed a deal for its propylene unit with Germany’s Lurgi using UOP’s Oleflex technology to produce propylene from propane.
In addition, it also inked another LSTK basis contract with Tecnimont of Italy. Furthermore, NatPet opted to use LyondellBasell’s Spheripol technology for its polypropylene and utilities requirements.
In December 2008, Natpet announced the commissioning of its plant, but, like many petrochemicals projects both in Saudi Arabia and around the world, the company saw intermittent production, which is a normal occurrence in this phase.
Petrochemicals Middle East took the opportunity to meet with Jamal Malaikah, president and COO of the company, to discuss this mammoth undertaking.
“We are one of at least five petrochemical companies in Saudi Arabia that have faced delays,” says Malaikah. “I believe the boom in mega projects in the GCC and around the world has put a lot of pressure on resources, manpower, engineering companies, vendors and materials. All those projects that started construction in 2005 and 2006 have faced major delays,” he explains.
The company’s production facility is located in Yanbu Industrial City on the western coast of the Kingdom. Production during the start-up period was irregular and witnessed some technical problems. Malaikah dismisses those problems as normal.
“All petrochemicals projects face technical problems in the first year and NatPet is no exception. However, we will see regular production in 2010 and in the years to come,” he promises.
The president claims that operational rates at the plant are close to 100%. “So far, we are doing well,” affirms Malaikah.
NatPet sells its products under off-take and marketing agreements (which are normally negotiated prior to the construction of a facility).
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FEATURED COMMENT
Hope so that the Engineering field will boom up in the year 2010 and so we may have a pleasant working environment.