Sadara to sup­ply feed­stock to Saudi Ru­fayah Chem­i­cals

Kuwait Times - - BUSINESS -

KHOBAR: Sadara Chem­i­cal, a $20 bil­lion petro­chem­i­cal joint ven­ture be­tween na­tional oil gi­ant Saudi Aramco and Dow Chem­i­cal, has signed a 20-year agree­ment with Saudi Ru­fayah Chem­i­cals Co (RCC), Sadara said yes­ter­day. Un­der the deal, RCC, a Saudi down­stream firm will use the aro­mat­ics con­cen­trate (Py­gas) and Py­oil supplied by Sadara for its new chem­i­cal com­plex planned for the PlasChem Park in Jubail.

Saudi Ara­bia is try­ing to de­velop its down­stream in­dus­try to pro­duce di­ver­si­fied prod­ucts near its petro­chem­i­cal fa­cil­i­ties. Aramco is build­ing its Rabigh PlusTech Park at PetroRabigh, a joint ven­ture with Ja­pan’s Su­mit­omo Chem­i­cal on the Red Sea coast.

Sadara did not give a value for the sup­ply agree­ment in a state­ment. The com­plex, due to be on stream in De­cem­ber 2020 and de­vel­oped by RCC, is ex­pected to have a to­tal in­vest­ment of about $500 mil­lion. RCC plans to pro­duce 12 down­stream prod­ucts with pro­duc­tion ca­pac­ity ex­ceed­ing 350,000 tons per year of prod­ucts in­clud­ing hy­dro­car­bon resin, iso­prene, pure DCPD, aro­matic sol­vents, pre­mium wash oils and other prod­ucts. Sadara said in Au­gust it started its facility on the Gulf coast of Saudi Ara­bia, the first mixed-feed cracker in the six-na­tion Gulf Co­op­er­a­tion Coun­cil, which can process both eth­ane and naph­tha.

The Sadara com­plex, com­pris­ing 26 in­te­grated fa­cil­i­ties, is the largest petro­chem­i­cal facility to be built in a sin­gle phase. All fa­cil­i­ties are sched­uled to be com­mis­sioned by the end of 2017.

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