Saudi chemical company signs $3.8bn power deal

08 July 2015

State utility will provide power for chemicals complex in Jubail

  • Saudi Electricity Company (SEC) will provide power for Sadara chemicals complex at Jubail Industrial City II
  • Renewable agreement is for a term of 20 years

Saudi Arabia’s Sadara Chemical Company has signed a SR14.13bn ($3.77bn) contract with state utility Saudi Electricity Company (SEC) to supply power to its chemicals complex in Jubail Industrial City in the Eastern Province of the kingdom.

The contract will have a 20-year term, which will be renewable at a later date.

Under the terms of the contract, SEC will provide power that will be used for the chemical complex at the Jubail Industrial City II.

Sadara, a $20bn 50:50 joint venture between Saudi Aramco and the US’ Dow Chemical, will start the commissioning of its first units in 2015. The complex is the largest single-phase petrochemicals plant ever built, and will have 26 process plants producing over 3 million tonnes a year of products.

MEED reported in May that Sadara had awarded the US’ Jacobs Engineering a four-year deal to carry out engineering, procurement and construction management (EPCM) services at the company’s Jubail complex.

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