Sadara signs guarantee for 33.3% of SaBuCo’s liabilities

Sadara Basic Services— which is 100 percent indirectly owned by Sadara Chemical Co.— signed on Wednesday a guarantee that accounts for 33.33 percent of the financial liabilities of Saudi Butanol Co. (SaBuCo). 

This percentage comes in proportion with Sadara’s holding in SaBuCo.

SaBuCo, set to be the world's largest butanol plant, has liabilities totaling SAR 865 million, which will take the form of a loan granted by the Saudi Industrial Development Fund (SIDF). 

The Jubail-based plant is expected to be on stream during the first quarter of 2015, and will be operated by the National Industrialization Company (Tasnee).

SaBuCo was developed through a three-way shareholders agreement between Kayan Petrochemical Co. (Saudi Kayan), Sadara, and Saudi Acrylic Acid Co. (SAAC), according to data available on Argaam. 

Butanol will be supplied as raw feedstock for Sadara's chemical complex in Saudi Arabia’s Jubail Industrial City II.