Saudi Kayan receives allocation document for additional 30M scfd of ethane

Saudi Kayan Petrochemical Co. headquarters

Saudi Kayan Petrochemical Co. (Saudi Kayan) received an allocation document for an additional 30 million standard cubic feet per day (scfd) of ethane from the Ministry of Energy.

According to the terms and conditions stated in the document, the company will start receiving the new quantities from mid-2026, or earlier if ethane is available.

In a statement to Tadawul, the company revealed that the total allocated feedstock includes the current and additional aforementioned quantities of ethane, totaling 80 million scfd. This is in addition to butane feedstock of 70,000 barrels per day (bpd).

The move is considered a strategic priority seeking to unlock shareholder value by improving profit margins and strengthening the company’s position to achieve sustained success despite the challenges and difficulties facing the petrochemical sector, the statement added.

Saudi Kayan stated that the delay from the previously announced date is due to its efforts to complete the requirements set by the Ministry of Energy in compliance with the relevant regulations and directives. Moreover, the associated costs are estimated at around $162 million, primarily due to the implementation of several projects to meet the ministry’s requirements.

The relevant financial impact will materialize once the additional ethane allocation is completed, which is expected to appear in H2 2026, or earlier if ethane becomes available.