Sadara awards contract for chemical pipeline to PlasChem Park

Sadara Chemical Company (Sadara) has awarded an engineering contract to Al Khobar-based Amec Foster Wheeler and Partners Engineering Co. to set up the first ethylene oxide (EO) and propylene oxide (PO) pipeline transportation system in the MENA region, it said in a statement on Monday.

The contract includes the design, engineering, material specifications and procurement for two seven-kilometer special material pipelines to transport EO and PO from its plants to PlasChem Park, a joint collaboration between Sadara and the Royal Commission for Jubail and Yanbu.

The system will distribute EO and PO to a number of PlasChem Park tenants, who will receive these feeds and other inputs to produce a variety of diversified specialty products.

No details of the contract value were given.

“The EO/PO transportation system will be commissioned just in time for the first wave of our EO and PO cluster investors and will provide a great incentive for EO and PO investors to locate in PlasChem Park,” said Dr Faisal Al-Faqeer, chief executive officer, Sadara.

Sadara is a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company.

PlasChem Park is a 12 square kilometer industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries.