Sadara Chemical Company (Sadara; www.sadara.com) and Baker Hughes (Houston; www.bakerhughes.com) have signed agreements through which Sadara will supply feedstock chemicals to Baker Hughes’ new 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 November 12 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, Chief Executive Officer 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, Baker Hughes Vice President, Oilfield and Industrial Chemicals. “The chemicals we will make at this facility are essential to the safe, efficient delivery of energy. Localizing these manufacturing capabilities in Saudi Arabia is a demonstration of our commitment to serving our customers and developing our local workforce.”
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.