Page 11 - DMEA Week 07 2023

DMEA PETROCHEMICALS DMEA

Chemanol and GDI sign

deal to set up chemicals JV

SAUDI ARABIA SAUDI companies Methanol Chemicals Co. Sabri Al-Ghamdi said the new JV would ‘add
(Chemanol) and Global Company for Down- value to the national economy’.
stream Industries (GDI) have agreed to partner Noting that the preliminary economic fea-
to set up a joint venture (JV) based in Jubail. sibility studies for the project have already been
In a statement to the Tadawul All Share Index completed and that detailed studies should be
(TASI), the local stock exchange, Chemanol said completed during Q3, Al-Ghamdi said that
that the new firm would produce methyl dietha- he expects the total capacity of the project’s
nolamine, choline chloride dimethyl disulphide, first phase to reach around 500,000 tonnes
dimethyl sulphate, chlorine derivatives, poly per year (tpy) of chemicals as well as specialty
alpha olefins and aromatic solvents. petrochemicals.
Chemanol will own a 60% stake in the new He added that the a preliminary list of target
company, with GDI holding the remainder. It is products has also been drawn up to meet local,
being set up as another ‘national champion’ and GCC and regional demand, with surplus pro-
will be based in Jubail Industrial City, the hub of duction expected to be exported internationally.
the Saudi petrochemicals industry. “Our strategy is to finance the project from
The statement said that the new venture was several financial channels, including the compa-
aimed at making Chemanol “one of the largest ny’s own resources and finance from the Saudi
manufacturers of specialty chemical products Industrial Development Fund, which plays a
in the region in line with the Kingdom’s Vision major and effective role in accelerating the local
2030.” economic development, as well as commercial
Products produced will be used widely, with loans,” Al-Ghamdi concluded.
applications in Pharmaceuticals, oil and gas, Separately, Chemanol said last month that it
fertilising, construction and carbon capture expects to complete work on an $80mn project
technologies. The two partners had also previ- to expand capacity at its Jubail methanol plant by
ously signed a Memorandum of Understanding the end of Q1 following delays relating to the late
(MoU) in 2022 to “explore co-operation oppor- submission of information from manufacturers.
tunities between the two parties in field of petro- At the time it said front-end engineering and
chemical products,” according to Saudi financial design (FEED) work on the facility was 95%
news portal, Argaam. complete, with expanded capacity seen reaching
Meanwhile, Chemanol’s managing director 331,000 tpy.™

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