Sadara Chemical has broken ground on the ethylene oxide (EO) and propylene oxide (PO) pipeline project at PlasChem Park, a 12km² site in Jubail Industrial City II, Saudi Arabia.
PlasChem Park is being developed as a collaboration between Sadara and the Royal Commission for Jubail and Yanbu (RCJY).
The pipeline system will distribute EO and PO to several PlasChem Park tenants, who will receive these feeds and other inputs to produce specialty products, such as oil and gas field chemicals, construction materials, detergents, home and personal care products, water treatment chemicals, mining chemicals, coating and paint applications, pharmaceutical goods and animal feed.
Sadara Chemical CEO Al-Faqeer said: “The EO/PO pipeline transportation system will be the first of its kind in the Middle East and North Africa (MENA) region.
“PlasChem Park investors will be able to receive Sadara’s EO and PO products directly to their facilities enabling on demand production of end products for the Saudi market, as well as further abroad.
“It is the first time such a pipeline will be built in the MENA region and serves as a significant driver of downstream manufacturing in the Kingdom.”
Sadara signed an engineering contract with Amec Foster Wheeler and Partners Engineering – Al Khobar in May 2018 for the design, engineering, material specifications and procurement for two 7km special material pipelines to transport EO and PO from Sadara plants to PlasChem Park.
The design phase of the pipeline project has been completed.
Al-Faqeer said: “The EO/PO transportation system will be commissioned in time for the first wave of our EO and PO cluster investors and will provide a strong incentive for similar investors to locate in PlasChem Park.
“The pipeline system will be second to none in the entire MENA region.”
PlasChem Park is dedicated to downstream chemical and conversion industries and is positioned to support downstream opportunities in several market segments, including the hydrocarbon resin cluster, ethylene oxide/propylene oxide (EO/PO) cluster, polyurethane cluster and plastics cluster.
Image: Sadara breaks ground on EO/PO pipeline project in Saudi Arabia. Photo: Courtesy of Sadara.