Sadara breaks ground on new pipeline project at PlasChem Park

Sadara EO PO Pipeline Groundbreaking 1Sadara Chemical Company broke ground on the Ethylene Oxide (EO) and Propylene Oxide (PO) pipeline project, with an aim to a major industrial cluster in PlasChem Park, a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu (RCJY)

The system is expected to feature a manifold for distributing 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, 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, among others.

Dr Faisal Al-Faqeer, CEO of Sadara, 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.”

In May 2018, Sadara entered into a detailed engineering contract with Amec Foster Wheeler and Partners Engineering Co. – Al Khobar for the design, engineering, material specifications and procurement for two seven-kilometre special material pipelines to transport EO and PO from Sadara plants to PlasChem Park.

“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,” continued Dr Al-Faqeer.

PlasChem Park is a 12 sq km industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries. PlasChem Park is a crucial element differentiating Sadara from another petrochemical, chemical and plastics manufacturing projects in Saudi Arabia.

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