Dow, Saudi Aramco to build major chemicals complex
25 Jul 2011
Midland, Michigan – Dow Chemical Co. and Saudi Aramco are establishing a joint venture to build and operate an integrated chemicals complex in Jubail Industrial City, Saudi Arabia, the companies have announced.
The formation of the JV, called Sadara Chemical Co., follows a project feasibility study and front-end engineering and design effort which began in 2007.
The complex will comprise 26 manufacturing units and built using Saudi Aramco’s project management and execution expertise. Employing Dow technologies, it will house flexible cracking capabilities and will produce over 3,000 ktpa of chemical and polymers.
The first production units will come on line in the second half of 2015, with all units expected to be up and running in 2016. Sadara is expected to deliver annual revenues of around $10 billion within a few years of operation.
Total investment for the project, including third party investments, will be approximately $20 billion. Sadara will become an equal JV between Saudi Aramco and Dow after an initial public offering. In addition to equity from the partners, Export Credit Agencies and financial institutions will provide project financing to Sadara.
The complex will include a world scale cracker that will be able to crack a wide range of feedstocks and be supplied by Saudi Aramco’s extensive integrated hydrocarbon infrastructure.
The manufacturing units will produce a wide range of performance products such as polyurethane raw materials (isocyanates, polyether polyols), propylene oxide, propylene glycol, elastomers, linear low density polyethylene, low density polyethylene, glycol ethers and amines.
