Chemanol's unit inks supply deal with Sadara Chemical

Logo of Methanol Chemicals Co. (Chemanol) 

Methanol Chemicals Co.'s (Chemanol) subsidiary, Madarat Al-Dhara Chemicals Co., which produces specialty chemicals, signed a long-term agreement with Sadara Chemical Co.

The agreement is to supply ethylene oxide to Madarat Al-Dhara’s methyl diethanolamine (MDEA) and choline chloride projects, which will serve as the nucleus of the company’s projects.

Chemanol aims to become one of the largest producers of specialty petrochemicals in the region, given that all the target products will be the first of their kind in the region, the company said in a statement to Tadawul.

For more news and details on the projects

Such products will be used in many vital and strategic industries, such as oil and gas, nutrition additives, extraction of environmentally harmful gases, carbon capture and storage technologies, and others. In addition, the two projects will enable further investments in downstream and specialty industries in the Kingdom, it added.

Chemanol also indicated that the relevant financial impact of the projects will be determined later upon completion of all relevant studies and agreements.

The company will announce any updates or developments in this regard in due course.