Saudi's PetroRabigh signs PO supply deal with Tasnee, SAIC

14 July 2010 11:47  [Source: ICIS news]

SINGAPORE (ICIS news)--Rabigh Refining and Petrochemical Co (PetroRabigh) said on Wednesday it has signed a deal to supply propylene oxide (PO) to the polyether polyol project of National Industrialization Co (Tasnee) and Saudi Advanced Industries Company (SAIC) in Rabigh, Saudi Arabia.

Under the deal, Petro Rabigh would provide 100,000 tonnes/year of PO to the 120,000 tonne/year polyether polyol project that was scheduled to start production in the fourth quarter of 2013, the company said in a statement to the Saudi Stock Exchange. The company did not disclose the value of the deal.

The polyether polyol project would cost between Saudi riyals (SR) 375-400m ($100-107m) to build, PetroRabigh said.

Polyether polyol is a feedstock for the production of polyurethane, which has applications in furniture, automotive and construction materials.

PetroRabigh is a joint venture between state-owned Saudi Aramco and Japan’s Sumitomo Chemical.

($1 = SR3.75)

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By: Nurluqman Suratman

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