Chemicals Deal in Saudi Arabia Sadara to Supply Halliburton-TAQA JV with Basic Chemicals

Editor: Dominik Stephan

Sadara, a joint-venture company of Saudi Aramco and Dow, has signed a long-term supply agreement with Energy Chemical Sources (ECSC), a newly formed joint venture between Halliburton and TAQA. Sadara will supply ECSC with chemical products for the next 20 years.

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Sadara supplies Ethylene Oxide and Propylene Oxide to a new ECSC facility in the nearby Plas Chem Park.
Sadara supplies Ethylene Oxide and Propylene Oxide to a new ECSC facility in the nearby Plas Chem Park.
(Picture: Dechema)

Jubail/Saudi Arabia – Under the agreement, Sadara will supply Ethylene Oxide (EO) and Propylene Oxide (PO) to the new ECSC facility to be built in Plas Chem Park over a period of 20 years. ECSC is a local Saudi company that specializes in providing oilfield chemicals for the oil and gas industry.

Commenting on the agreement, Ziad Al-Labban, Sadara’s Chief Executive Officer, said, “This strategic, long-term supply agreement with ECSC is a key step forward in the development of the local oil and gas chemicals market. Capitalizing on TAQA and Halliburton’s combined knowledge and experience, and utilizing the chemicals that Sadara will be producing, we will together support the Kingdom’s oil and gas industry through the manufacturing of essential oil and gas chemicals locally.”

“Plas Chem is uniquely positioned to enable and support downstream opportunities in many market segments. Specifically, we will enable many industries that rely on EO and PO, supplying 60,000 tons of EO and 20,000 tons of PO per year via pipeline to the Plas Chem Park tenants, and we look forward to welcoming ECSC as the first tenant and the second in Jubail 2 after the Dow Reverse Osmosis Membrane project. Plas Chem Park investors will benefit from the many shared services, simplifying and streamlining their operations in the long run,” said Mohammad Alazzaz, Director of Value Park, Sadara.

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