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Dow and Saudi Aramco's Joint Chemicals Facility

In an effort to strengthen Saudi Arabias role as a leading hub for petrochemical export, Dow Chemicals is teaming up with Saudi Aramco to construct an...

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|Jul 25|magazine14 min read

 

In an effort to strengthen Saudi Arabia’s role as a leading hub for petrochemical export, Dow Chemicals is teaming up with Saudi Aramco to construct and operate the world’s biggest chemicals complex.  Located at Jubail on Saudi Arabia’s Persian Gulf coast, the joint venture—to be named Sadara Chemical Co.—is scheduled for immediate construction and is expected to be running by late 2015, with all manufacturing units online by 2016.

The Sadara complex is estimated to cost $20 billion, and will generate annual revenue of $10 billion.  The project will solidify Saudi Aramco’s position as the world’s largest energy company, with capacity to produce 12.5 million barrels a day of crude oil. 

 

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"This premier partnership is ... designed to capture growth in the rapidly growing sectors of energy, transportation and infrastructure, and consumer products," Dow Chief Executive Officer Andrew N. Liveris said in the statement.

Aramco's Chief Executive Officer Khaled Al Falih said the joint venture with Dow would "enable significant development in the country's conversion industry, thereby supporting Saudi Arabia's ambition to be a magnet for downstream manufacturing investments that add significant value to the kingdom's hydrocarbon resources."

Sadara will be Saudi Aramco’s second large-scale petrochemical complex in the country, the first being a joint venture with Sumitomo Chemical Co.  The plant will produce polyeurethanes, propylene oxide, propylene glycol, elastomers, linear low-density polyethylene, low-density polyethylene, glycol ethers and amines.