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Linde and Sipchem sign MOU to form industrial gases partnership in Saudi Arabia

December 10/2019

MOSCOW (MRC) -- Sahara International Petrochemical Co. (Sipchem) and Linde on 3 December signed initial terms to establish a strategic partnership for the supply of industrial gases, to meet growing demand from the refining and chemical industries in Saudi Arabia, reported Chemweek.

The primary focus of the partnership, which is expected to become operational in 2020, will be the connection via pipeline of existing hydrogen and synthesis gas (syngas) plants owned by the two parties at Jubail Industrial City, and the development of new production facilities to supply carbon monoxide, hydrogen, syngas, and associated gases in the industrial clusters in Saudi Arabia. The partnership will leverage the strengths and footprints of both companies. The agreement is valid until the end of March 2020.
"Sipchem is eager to expand its operations to fulfill the growing demand from national refiners and petrochemical plants in the kingdom," said Sipchem CEO Saleh Bahamdan. "This partnership has the potential to blend stable returns with long-term supply commitments, offering us the opportunity to manage the typical cyclicality of the petrochemical industry."

"The combined onsite footprint and operational excellence of the two companies will create a compelling opportunity for us and our customers in Saudi Arabia," said Lindes executive vice president/EMEA, Eduardo Menezes.

We remind that, as MRC wrote previously, on 29 December, 2014, Sipchem started a new ethyl vinyl acetate (EVA) film plant. Located at Hail in Saudi Arabia, the plant has a production capacity of 4,000 mt/year.

According to MRC's DataScope report, September EVA imports to Russia fell by 22,7% year on year to 3,420 tonnes from 4,430 tonnes in September 2018, and overall imports of this grade of ethylene copolymer into the Russian Federation decreased in January-September 2019 by 18,2% year on year to 29,190 tonnes (35,690 tonnes in the first nine months of 2018).

Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
Author:Margaret Volkova
Tags:EVA, copolymer, ethylene, gas processing, petrochemistry, Linde Group, Sipchem, Russia, Saudi Arabia.
Category:General News
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