Sadara inks supply pact with a Halliburton-TAQA JV for EO & PO

Sadara Chemical Company, a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company, has entered into a 20-year supply agreement with Energy Chemical Sources Company (ECSC), a newly formed joint venture between Halliburton and TAQA.
 
As per the agreement, Sadara will supply ethylene oxide (EO) and propylene oxide (PO) to the new ECSC facility in PlasChem Park located in Jubail Industrial City II. PlasChem Park is a 12 km2 industrial park adjacent to Sadara and is being developed under the collaborative efforts between Sadara and the Royal Commission for Jubail and Yanbu (RCJY). ECSC is a local Saudi company that specialises in providing oilfield chemicals for the oil and gas industry.
 
“This strategic, long-term supply agreement with ECSC is a key step forward in the development of the local oil and gas chemicals market. Capitalising on TAQA and Halliburton’s combined knowledge and experience, and utilising the chemicals that Sadara will be producing, we will together support the Kingdom’s oil and gas industry through the manufacturing of essential oil and gas chemicals locally,” said Ziad Al-Labban, chief executive officer, Sadara.
 
Mohammad Alazzaz, director of Value Park, Sadara, added, “PlasChem Park is uniquely positioned to enable and support downstream opportunities in many market segments. Specifically, we will enable many industries that rely on EO and PO, supplying 60,000 tons of EO and 20,000 tonnes of PO per year via pipeline to the PlasChem Park tenants, and we look forward to welcoming ECSC as the first tenant and the second in Jubail 2 after the Dow Reverse Osmosis Membrane project.”
 
The PlasChem Park is expected to attract diversified investments for downstream applications such as the production of oil and gas chemicals, construction materials, paints and coatings, as well as home and personal care products. These investments will create new jobs for Saudi nationals in the Kingdom’s downstream industry, as well as contributing to the fulfillment of the Government’s vision to diversify the Kingdom’s economy.