Saudi Aramco, Dow sign MoU for Ras Tanura jv

12 May 2007 12:45  [Source: ICIS news]

by Abdul Hadhi

SINGAPORE (ICIS news)--Saudi Aramco and Dow Chemical on Saturday announced the signing of a detailed memorandum of understanding (MoU) to build, own and operate the Ras Tanura integrated project valued by the industry at a minimum of $20bn (€14.8bn).

They will now enter the final negotiation phase to form a joint venture to run the massive chemicals and plastics production complex in eastern Saudi Arabia, the two companies said in a joint statement issued from Aramco’s base in Dhahran.

Aramco, the world’s largest oil exporter, and Dow, the biggest chemicals company by sales globally, did not give details about how much the project will cost but that it will be “one of the largest grassroots plastics and chemicals production facility in the world”.

The project will be positioned to serve the major global markets when fully operational, and will be operationally integrated with Aramco’s 550,000 bbl/day Ras Tanura Refinery and Ju’aymah gas processing plant – which will supply feedstock and continue to be owned by the Saudi firm.

“This project will leverage our largest refining asset and enhance its profitability by capitalising on the value addition opportunities and synergies existing between refining and petrochemicals,” Aramco president and CEO Abdallah S Jum’ah said in the statement.

He added that the chemical materials and plastics to be produced by the joint venture “will help spawn other downstream chemical conversion industries”.

Dow Chairman and CEO Andrew Liveris said the project, which will further strengthen the US firm’s presence in the Middle East, will “have a long-term secure and reliable feedstock position with the integration to the adjacent refinery and gas processing plant, while positioning the new enterprise to grow its product sales”.

The project will produce both basic and performance products including ethylene, propylene, aromatic and chlorine derivatives, Aramco and Dow said.

Initially, the project scope includes world-scale production units for polyethylene, ethylene oxide and glycol, propylene oxide and glycol, chlor-alkali, vinyl chloride monomer, polyurethane components, epoxy resins, polycarbonate, amines and glycol ethers.

($1=€0.74)


By: Abdul Hadhi
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index