Saudi Sadara, Rufayah Chemicals sign feedstock supply deal

According to media reports, Sadara Chemical, a JV between Saudi Aramco and Dow Chemical, signed a deal with Saudi Rufayah Chemicals Co (RCC) that will last for 20 years. Under the deal, Sadara will supply RCC the aromatics concentrate (Pygas) and Pyoil for its new chemical complex, which is expected to be located at PlasChem Park Aramco which is currently being built in Jubail. The complex is expected to be commissioned in December 2020 and have a total investment of about $500 million.

As part of the deal, RCC is also developing a new complex with a capacity of more than 350,000 tons/year of products including hydrocarbon resin, isoprene, pure DCPD, aromatic solvents, premium wash oils and other products which will enable them to produce 12 downstream products, the reports revealed.

Following the startup of Sadara’s first mixed-feed cracker in August, the Sadara complex, which will reportedly include 26 facilities, will be the largest petrochemical facility to be built in a single phase and is expected to start operating by the end of 2017.