Saudi Aramco to supply natural gasoline to Sadara chemical plant

State-owned Saudi Aramco has signed an agreement with Sadara Chemical Company (Sadara) to supply natural gasoline as feedstock for the steam cracker in its chemical plant in Jubail Industrial City II.

Under the five-year deal, Aramco will supply natural gasoline to Sadara, up to a maximum daily quantity, and subject to other terms and conditions, Sadara Basic Services Company said in a statement to Tadawul on Tuesday.

Sadara utilizes ethane, dry gas, refinery naphtha, and other refinery liquids sourced from Saudi Aramco and third parties to produce its products at the Sadara chemical complex in Jubail.

The company had previously entered into a number of agreements with Aramco to supply feedstock for the Sadara project, including a naphtha feedstock supply agreement in 2012.

The quantity of naphtha feedstock which Sadara is entitled to nominate and purchase under the 2012 agreement will be reduced by an amount equal to the quantity of natural gasoline that Sadara nominates under the natural gasoline feedstock supply agreement, subject to a conversion factor, the statement added.

The price per metric ton of natural gasoline will be based on a market-related price.

Sadara Basic Services Company is indirectly owned 100 percent by Sadara, a company co-owned by Saudi Aramco and The Dow Chemical Company.