Sadara In Oilfield Chemicals  Supply Deal

The Sadara petrochemicals joint venture of Saudi Aramco and Dow Chemical has signed a long term feedstock supply agreement with the recently formed Energy Chemicals Sources Company (ECSC) joint venture of US oilfield services firm Halliburton and Saudi conglomerate Taqa.

The 20-year agreement calls for Sadara to supply ethylene oxide (EO) and propylene oxide (PO) to a new oilfield chemicals plants to be built in the PlasChem Park industrial zone, which is being developed alongside the Sadara complex in Jubail Industrial City 2.

Sadara will have capacity to produce 3.33mn tons/year of specialty chemicals and plastics, starting up this year and due to be fully operational in 2016. Included in its diverse output will be units producing up to 360,000 t/y of EO and 390,000 t/y of PO, most of which will be exported to Asia (MEES, 22 March 2013). (CONTINUED - 279 WORDS)