Page 11 - DMEA Week 22 2022

DMEA PETROCHEMICALS DMEA

Sadara begins piping

feedstock to PlasChem Park

MIDDLE EAST SAUDI Arabia’s Sadara Chemical Co. has majority state-owned Saudi Aramco and US firm
announced that its dedicated pipeline network Dow Chemical, is the project company estab-
has begun supplying feedstock to tenants in the lished to develop a 26-plant, integrated complex
adjacent PlasChem Park in Jubail Industrial City which was built at a cost of around $20bn and,
II. The EO/PO pipeline system was formally following the start of commercial operations in
launched this week following its completion in 2017, produces more than 3mn tonnes per year
September 2021. The lines are 6.8 km and 6.2 km (tpy) of speciality chemicals.
in length respectively, terminating at PlasChem It is also responsible for developing PlasChem
Park’s Oxide Distribution Facility. Park in co-ordination with the government’s
The feedstock will be used alongside other Royal Commission for Jubail and Yanbu. In late
materials by tenants of the 12-square km March, the local Gas Arabian Services (GAS)
PlasChem Park to produce diversified speciality was awarded a $20mn contract to supply and
products for use throughout the Saudi down- construct a gas distribution network for the
stream sector, including in petrochemicals, park. PlasChem comprises clusters for chemi-
construction materials, detergents, home and cals intermediates, EO/PO, polyurethane and
personal care products, water treatment chem- polymers.
icals and coating and paint applications. In March last year, the JV partners reached a
Ahead of the launch, Sadara carried out trials debt restructuring agreement guaranteeing up to
to supply feedstock to Halliburton’s Chemical an aggregate of $3.7bn of senior debt proportion-
Reaction Plant in PlasChem Park, which was ate to their shareholding. Aramco and Dow will
opened in late Q1, located 2 km from the central also benefit from a repayment grace period that
Sadara facility. runs until June 2026 and the deal also extends
Sadara CEO Faisal M. AlFaqeer commented: the final maturity date from 2029 to 2038.
“This is a major step in the development of Meanwhile, Dow said: “Sadara will also ben-
PlasChem Park, which provides business tenants efit from longer-term structural operating and
with an easy access to one of our distinguished feedstock improvements, further enhancing its Source: Royal
feedstocks.” crackers’ flexibility and improving Sadara’s posi- Commission for Jubail
Sadara, a 65:35 joint venture (JV) between tion on the global cost curve.”™ and Yanbu

Week 22 02•June•2022 www. NEWSBASE .com P11