Saudi petchem JV likely to delay plant start to Q1

SINGAPORE, Sept 13 (Reuters) - Saudi Chevron Phillips Co is likely to delay the start up of its $3 billion petrochemical plant in Jubail to first-quarter 2008 from fourth-quarter this year, industry sources and end users said on Thursday.

"Indications are there is likely to be a delay," one source said.

A company spokesman could not be immediately reached for comment. Some Asian petrochemical firms said the delay might have prompted Saudi Aramco to make a rare term naphtha offer for October 2007-March 2008 supplies that had been initially reserved for the plant, which can produce 220,000 tonnes of ethylene a year.

Other sources said the unusual offer for that period may have also been due to many regional petrochemical firms not renewing their contracts for second-half 2007 supplies because of high premiums, traders said.

Saudi Chevron Phillips Company is equally owned by Saudi Industrial Investment Group and Chevron Phillips Chemical Company.