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 ?xml:namespace>
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
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.
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