Sadara, Baker Hughes sign long-term PlasChem Park contracts for supply of ethylene/propylene oxides via pipeline

Sadara, Baker Hughes sign long-term PlasChem Park contracts for supply of ethylene/propylene oxides via pipeline
Published: 14 November 2019 - 3 a.m.
By: Martin Menachery
Sadara Chemical Company and Baker Hughes have signed agreements through which Sadara will supply feedstock chemicals to a Baker Hughes chemical manufacturing facility in PlasChem Park.

Under the agreements’ terms, Sadara will supply ethylene oxide (EO) and propylene oxide (PO) via pipeline to the Baker Hughes facility over a 20-year period. The companies formally signed the agreements at a ground-breaking ceremony on at the facility’s PlasChem Park location, which is adjacent to the Sadara complex in Jubail.

“We are excited to have signed these supply agreements with Baker Hughes, a step that will help them establish a strong presence in the booming industrial sector in Saudi Arabia. The competitive benefits that this relationship is going to bring to chemicals manufacturing in the kingdom are significant, and in complete alignment with our efforts as Sadara to enable downstream manufacturing opportunities in kingdom, and with Vision 2030,” said Dr Faisal M Al-Faqeer, CEO of Sadara.

“PlasChem Park is uniquely positioned to enable and support these opportunities for diversification of the manufacturing industry in Saudi Arabia, and we look forward to welcoming Baker Hughes as one of the park’s first tenants.”

“We are pleased to partner with Sadara as we build our first chemicals manufacturing facility in Saudi Arabia to meet the growing needs of customers in the kingdom and across the Middle East,” said Jerome Jammal, vice president, oilfield and industrial chemicals, Baker Hughes.

The chemicals we will make at this facility are essential to the safe, efficient delivery of energy. Localising these manufacturing capabilities in Saudi Arabia is a demonstration of our commitment to serving our customers and developing our local workforce.”

Baker Hughes is an energy technology company that provides solutions to energy and industrial companies worldwide. The manufacturing facility in PlasChem Park will support the company’s full portfolio of chemical services and technology solutions for the hydrocarbon production, transmission, processing, and petrochemical industries.

Sadara’s EO and PO pipelines attract diversified investments into PlasChem Park 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 value chains in the kingdom’s downstream industry, as well as contribute to the fulfilment of the government’s vision to diversify the kingdom’s economy.

PlasChem Park, a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu (RCJY), is a 12-sq-km industrial park in Jubail Industrial City II, dedicated to chemical and conversion industries. PlasChem Park is a key element in differentiating Sadara from previous petrochemical, chemical and plastics manufacturing projects in Saudi Arabia.

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