Terrorist attacks on Aramco facilities have massive impact on petrochemicals production
2019-09-16    [Source:chemweek.com]

Drone attacks, launched by Yemen’s Houthi rebels, on Abqaiq, the world’s largest oil processing facility in Saudi Arabia, and on the Khurais oil field is causing massive disruption to feedstock supplies. Saudi Arabia’s newly-appointed Minister of Energy, Prince Abdulaziz bin Salman bin Abdulaziz, has issued a statement that on Saturday 14 September at 3:31 and 3:42 am local time, several explosions occurred as a result of terrorist attacks on Saudi Aramco plants at Khurais and Abqaiq, resulting in fires which were brought under control. The drone attacks led to a temporary suspension of production at the plants. According to preliminary estimates, these explosions led to the interruption of crude oil supplies estimated at 5.7 million barrels, or about 50% of the company's production. Part of the decrease will be compensated for through stocks.

The minister said that these explosions have also led to the cessation of production of associated gas estimated at 2 billion cubic feet/day, used to produce 700,000 barrels of natural gas liquids, which will reduce the supply of ethane and natural gas liquids by up to 50%. The minister said the company is still assessing the implications of the attacks. He added that the terrorist attack and sabotage are an extension of the recent attacks that targeted oil and civil facilities, pumping stations and oil tankers in the Arabian Gulf.

The minister stressed that these attacks are not only aimed at the vital installations of the Kingdom, but also on the global oil supply and its security, and thus pose a threat to the global economy.

Following the attacks, Sabic announced cuts in the supply of feedstock as of 14 September to some of its largest production subsidiaries, averaging 49%. The company is currently evaluating the final effects to determine the financial impact. More specifically, its Yanbu National Petrochemical Co. (Yansab) has had its feedstock supply cut by approximately 30% as of 14 September and Saudi Kayan, one of Sabic’s largest affiliates, has had its feedstock supplies reduced by approximately 50% starting 14 September.

Separately, the National Industrialization Co. (Tasnee) said its feedstock supply as of 15 September is nearly 41% down. Sahara International Petrochemical Co. (Sipchem) says it is seeing a near 40% shortage in feedstock supplies as of 15 September. Advanced Petrochemical Co. also reports a close to 40% cut in feedstock supplies as of 14 September as does National Petrochemical Co. (Petrochem). Sadara, a joint venture between Aramco and Dow Chemical, says its feedstock supply was cut by 16%.

After visiting the incident locations, Amin Nasser, president & CEO of Aramco, said, “We are gratified that there were no injuries. I would like to thank all teams that responded timely to the incidents and brought the situation under control. Work is underway to restore production.”


Source: https://chemweek.com/CW/Document/106001/Terrorist-attacks-on-Aramco-facilities-have-massive-impact-on-petrochemicals-production

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