Sadara’s EO/PO Pipelines Begin Supplies to PlasChem Park

Dubai-United Arab Emirates, May 30, 2022 — Sadara Chemical Company (Sadara) announced that its Ethylene Oxide (EO) and Propylene Oxide (PO) (EO/PO) pipeline transportation system is now fully operational, supplying feedstock from the company’s Jubail chemical complex to tenants in the adjacent value park, “PlasChem Park.”

These tenants will use the feedstock and other inputs to produce diversified specialty products, enabling important applications for the Kingdom in a number of key downstream industries, such as oil and gas chemicals, construction materials, detergents, home and personal care products, water treatment chemicals and coating and paint applications.

The EO/PO pipeline transportation system is the first of its kind in the Middle East and North Africa (MENA) region. Sadara’s first trial of the system supplied feedstock to the Halliburton chemical facility, which was inaugurated in March of this year.

Commenting on the milestone, Sadara’s CEO, Dr. Faisal M. AlFaqeer, said: “This is a major step in the development of PlasChem Park, which provides business tenants with an easy access to one of our distinguished feedstocks.”

“The facilities envisioned for PlasChem Park are vital for the future of the Kingdom’s petrochemicals industry. They will help realize the Kingdom’s Downstream Initiative, combining manufacturers’ expertise with the special chemicals that Sadara produces, for the benefit of local, national and global markets,” Dr. AlFaqeer said.

Sadara celebrated mechanical completion of the EO/PO Pipeline and Distribution Center Project on Sept. 1, 2021. The project consists of two parallel pipelines, each about 6 kilometers long, distributing EO and PO feedstock from Sadara’s site to business tenants in PlasChem Park.

PlasChem Park is a 12-km² industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries in Saudi Arabia. Developed by the Royal Commission for Jubail and Yanbu (RCJY), the park is adjacent to Sadara’s Chemical Complex and is uniquely positioned to enable and support many Sadara-based downstream opportunities in many market segments, including the Chemicals Intermediates Cluster, Ethylene Oxide/Propylene Oxide (EO/PO) Cluster, Polyurethane Cluster and Polymers Cluster.

PlasChem Park’s facilities will contribute to Saudi Arabia’s Downstream Initiative and will help diversify the Kingdom’s economy, supporting the Local Content initiative and Vision 2030.