PetroRabigh hit by Saudi feedstock shortage

Saudi Arabia's Petrorabigh said today it has been hit by feedstock supply shortages following attacks on the country's oil facilities, making it the latest petrochemical producer to be affected.

PetroRabigh's supply of ethane gas has been cut by 8pc, while its crude oil supply has fallen by 12.5pc. Its feedstock volumes are unclear.

The feedstock shortage could hit PetroRabigh's polyethylene (PE) production, although the company has not confirmed any impact on output. The shortages have not affected the company's Creditor Reliability Test (CRT) activities, it said.

Petrorabigh, a joint venture between state-owned Saudi Aramco and Japan's Sumitomo located at Rabigh on Saudi Arabia's west coast, operates a 600,000 t/yr linear low-density PE (LLDPE)/high-density PE (HDPE) swing line, a 300,000 t/yr HDPE unit and a 160,000 t/yr low-density PE (LDPE) plant, according to Argus data.

The company is likely to maintain PE sales to domestic customers, as other producers in the country are hit by feedstock supply shortages.

Sabic and other petrochemical producers based in Jubail on Saudi Arabia's east coast have said their feedstock will be curbed in the aftermath of the 14 September attacks on Saudi oil installations.

Petrorabigh's 8pc ethane feedstock cut is limited compared to other producers in Jubail. Sabic affiliate Saudi Kayan has been severely affected by the production cuts, with its feedstock allocation to be reduced by 50pc.

Sabic is informing its Asia-Pacific and Middle East customers that it is unable to meet existing polymer orders for September because of a feedstock shortage.