Sadara signs long-term partnership agreement with RCC

JUBAIL, SAUDI ARABIA: Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical Company, has signed a long-term partnership agreement with Rufayah Chemicals Company (RCC).

Under the agreement RCC, a Saudi downstream company will use the aromatics concentrate (Pygas) and Pyoil supplied by Sadara for its new chemical complex planned for the PlasChem Park in Jubail. The new chemical complex is a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu (RCJY).

The supply agreements will cover a period of 20 years. 

The RCC chemical complex will have a total investment of about $500 million and will use the feedstock obtained from Sadara and potentially other liquid crackers in Saudi Arabia. This new complex will produce a wide-range of downstream chemical products such as hydrocarbon resin, isoprene, pure DCPD, aromatic solvents, premium wash oils and other products.

Once complete, RCC expects to manufacture 12 different downstream products with an overall production capacity of more than 350 KTA. The complex is projected to be on-stream in December 2020.

“The new RCC plant will produce unique speciality chemicals that will serve the growing speciality chemicals industry in the Kingdom and the wider MENA region, filling a gap in local manufacture and supply,” said Mohammad Alazzaz, director of Value Park, Sadara.

“The implementation of this project will convert underutilised existing raw material streams into value-added speciality chemicals and products. The synergy created between naphtha crackers, such as Sadara’s mixed feed cracker and other liquid crackers in Saudi Arabia, and the Rufayah chemical complex allows a very dynamic and efficient model to capitalise on available raw materials through sustainable value addition,” added Fawaz AlShora, general manager, RCC.

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