Saudi Butanol Co, a joint venture of local petrochemicals firms, has begun trials of its Jubail plant, reported Reuters.
Testing will take between three and six months at the plant, said a statement from Sahara Petrochemical Co.
The estimated cost of the project is around $534 million. It was first expected to come on stream in the first quarter of 2015, when it was first announced in 2012.
Now commercial operations are expected to start in the first half of 2016.
According to Arab News the plant will have a capacity of 330,000 tons a year of n-butanol and 11,000 tons a year of iso-butanol.
The project is owned by group consisting of Saudi Kayan Petrochemical Co., Sadara Chemical Co. (a joint venture between Saudi Aramco and The Dow Chemical Co. and Saudi Acrylic Acid Co. (SAAC).
SAAC itself is an affiliate of Tasnee and Sahara.