National Industrialization Co. (Tasnee), Sahara Petrochemical Co. and Saudi Kayan Petrochemical Co. said pilot operations at their joint-venture butanol plant have started on Tuesday and are expected to last three to six months.
Commercial operations will commence in the first half of 2016, the companies added in a statement on Tadawul.
The plant equipment and production efficiency will be tested through technical licensing and contracts.
The related financial impact is difficult to measure, being linked to changes in energy prices, they added.
Saudi Kayan added the project import and export facilities were completed in Jubail-based King Fahad Industrial Port. These facilities are aimed at exporting Kayan's output and other partners' products based on specific contracts.
The partners will have an equal share in the plant production, Kayan added.
The project is equally owned by Sadara Chemicals Co., Saudi Kayan and Saudi Acrylic Acid Co. (SAAC). Sahara owns 43.16 percent of SAAC.
The facility will produce 330,000 metric tons of n-butanol per annum and 11,000 metric tons of iso-butanol.