Sahara International Petrochemical Co. announces signing a Memorandum of Understanding with Linde PLC
Wednesday, December 04, 2019
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ELEMENT LIST EXPLANATION
Counterparty Linde PLC
Introduction Sahara International Petrochemical Company (Sipchem) and Linde announced on Tuesday December 3, 2019, that they have signed initial terms to establish a strategic partnership for the supply of industrial gases, to meet growing demand from the refining and chemical industries in the Kingdom of Saudi Arabia.
Memorandum Signing Date 2019-12-03 Corresponding to 1441-04-06
Counterparty Linde PLC
Memorandum Subject The primary focus of the partnership, which is expected to become operational in 2020, will be the connection via pipeline of existing hydrogen and syngas plants owned by the two parties in Jubail Industrial City, and the development of new production facilities to supply carbon monoxide, hydrogen, syngas and associated gases in industrial clusters in the Kingdom. The partnership will leverage the strengths and footprints of both companies to offer best-in-class solutions primarily to the refining and chemical industries.
Memorandum Duration The terms shall be valid until the end of March 2020.
Related Parties N/A
Financial Impact The financial impact shall be assessed once the negotiation period is concluded and the final contracts are finalized
Additional Information “Sipchem is eager to expand its operations to fulfil the growing demand from national refiners and petrochemical plants in the Kingdom”, said Sipchem’s CEO, Eng. Saleh Bahamdan. “This partnership has the potential to blend stable returns with long-term supply commitments, offering us the opportunity to manage the typical cyclicality of the petrochemical industry.”

 

“The combined onsite footprint and operation excellence of the two companies will create a compelling opportunity for us and our customers in Saudi Arabia”, said Linde’s Executive Vice President EMEA, Eduardo Menezes. “The partnership underpins Linde’s ongoing commitment to support the Kingdom’s Vision 2030 to develop highly efficient and reliable industrial gases facilities.”