Saudi’s Sadara to supply feedstock to Saudi Rufayah Chemicals

Sadara Chemical, a $20bn 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 on Sunday.

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 $500m.

RCC plans to produce 12 downstream products with production capacity exceeding 350,000 tonnes 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.