Sadara Chemical Company has agreed to supply ethylene oxide (EO) and propylene oxide (PO) to Energy Chemical Sources Company (ECSC), a new company to be established at the adjacent PlasChem Park at Jubail in Saudi Arabia.
The 20-year agreement was for an undisclosed amount of EO and PO, which will be converted into oil field chemicals aimed at the local market. ECSC is a joint venture between the US Halliburton and the partly state-owned Industrialisation & Energy Services Company (Taqa).
ECSC is the second tenant to agree to establish a manufacturing base at the PlasChem Park. The US Dow Chemical plans to manufacture reverse osmosis filters at the site.
Sadara has stated that it intends to supply up to 60,000 tonnes a year (t/y) of EO and 20,000 t/y of PO to the PlasChem Park when the complex is fully operational.