Japan and Saudi Arabia Develop Project for High-Value Petrochemicals from Heavy Gas Oils

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Researched by Industrial Info Resources (Sugar Land, Texas)--A project between Saudi Arabia and Japan to produce high-value feed from low-grade heavy gas oils will commence semi-commercial production at the Nippon oil refinery in Mizushima, Japan, by 2012. The facility initially will produce 3,000 barrels per day (BBL/d) of high-value feedstock. Planning is under way to set up full-scale commercial production, which will yield 30,000 BBL/d of high-value products.

The project is a joint venture among Nippon Oil Corporation (TYO:5001) (Tokyo, Japan), King Fahd University of Petroleum and Minerals (Dhahran, Saudi Arabia), state-owned Saudi Aramco (Dhahran, Saudi Arabia), and Japan Cooperation Center Petroleum (JCCP) (Tokyo). The project is based on the high-severity fluidized catalytic cracking (HS-FCC) technology, developed by the Center for Refining and Petrochemicals, at King Fahd University. Saudi Aramco is a leading name in the refining and petrochemicals sector, managing 253.8 trillion cubic feet and 260 billion barrels of gas and oil reserves, respectively. Nippon Oil's businesses span exploration, refining, production and marketing of petroleum products. The company markets products under the brand name Eneos.

Dr. Sulaiman Al-Khattaf, director of the Center for Refining and Petrochemicals, indicated that the technology, which took 12 years to develop, uses powdered catalyst and a down-flow reactor to process heavy gas oil. The process produces high added value for fractions such as 29% for gasoline, 25% for propylene, and 19.5% for butane.

The project is being developed in four stages. The first stage included development of process technology, while the second stage involved establishment of the HS-FCC demonstration unit at the Ras Tanura refinery, operated by Saudi Aramco. This unit successfully produced 30 BBL/d of high-value products. The semi-commercial production unit in Japan is the third stage, while the planned full-scale, 30,000-BBL/d facility will be the fourth.

Saudi Arabia and Japan have shared cordial economic ties for decades. Japan has made several large-scale project investments in Saudi Arabia. Economic relations between the two countries recently received a boost with the inauguration of the $10.3 billion Rabigh Refining and Petrochemicals complex (PetroRabigh). In August 2005, Sumitomo Chemicals Company (TYO:4005) (Tokyo) and Saudi Aramco signed an agreement to form a 50:50 joint venture to develop PetroRabigh.

Sumitomo Chemicals is a global chemicals company, with business interests in fine chemicals; agriculture and basic chemicals; pharmaceuticals; and petrochemicals. The complex, on attaining full-scale operations, will produce 2.4 million tons per year of propylene- and ethylene-based derivates, and 18.4 million tons per year of high-value petroleum products. The project is considered to be among the largest integrated petrochemical and refining complexes in the world.

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