The Butanol JV is expected to be owned by SAAC, SABIC and SADARA each with a 33.3% shareholding.  On this basis, by virtue of Sahara’s aggregate 43.16% equity stake in SAAC, Sahara would own an indirect equity stake of 14.38% in the Butanol JV.  Until the formation of SADARA, its shareholders Saudi Aramco and Saudi Dow will be directly participating in the Butanol JV.

The Butanol JV will be established to own, manage and operate the Butanol Plant of the Integrated Acrylates Complex.  The n-butanol production capacity will be made available in equal proportions to SAAC, SABIC and SADARA.  Each of them will be responsible for procuring and supplying propylene and sales gas feedstock for production of their share of n-butanol and offtake thereof.  All iso-butyraldehyde production and one-third of hydrogen capacity will be made available to SAAC, while the remaining hydrogen capacity will be made available to SABIC and each of SAAC and SABIC will have to arrange corresponding feedstock supply and product offtake accordingly.  Commercial operations are expected to commence in the second quarter of 2014.

Both n-butanol and iso-butyraldehyde are important intermediates for the construction industry, especially for paints and coatings.  N-butanol is also used as a solvent and feedstock for the production of butyl acrylate and acetate.