SABIC buys China spot methanol to offset Ar-Razi production losses: report

SABIC procured 45,000 metric tons (MT) of CFR China spot methanol cargoes last week to cover production losses from the shutdown of Ar-Razi plant in Jubail, Platts reported on Friday, citing sources familiar with the matter.

The petrochemical giant will explore time swaps with major Middle Eastern producers to help tackle the inventory crunch, and it may require purchasing more spot methanol depending on the plant status, a company source said.

Repairing Ar-Razi's methanol units 2, 3, and 4 is likely to take about another month, representing a production loss of up to 190,000 MT.

The facility has an overall methanol production capacity of 5.6 million MT per year.

It is a joint venture of SABIC and a consortium of Japanese companies led by Mitsubishi Gas Chemical Company.