Sadara Chemical Company (Sadara) and Rufayah Chemicals Company (RCC), a Saudi downstream company, recently signed a long-term partnership agreement.
According to the deal, Sadara will supply RCC with aromatics concentrate (pygas) and pyoil, generated from cracking naphtha, to be used by RCC in a new chemical complex planned for PlasChem Park. The park is a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu (RCJY). The supply agreement will cover a period of 20 years.
The RCC chemical complex will have a total investment of about $500 million. Once complete, RCC expects to manufacture 12 different downstream products with an overall production capacity of more than 350 KTA. The complex is projected to be on stream in December 2020.
Sadara’s Director of Value Park Mohammad Alazzaz said: “The new RCC plant will produce unique specialty chemicals that will serve the growing specialty chemicals industry in the Kingdom and the wider MENA region, filling a gap in local manufacture and supply.”
RCC’s General Manager Fawaz Al-Shora said: “The implementation of this project will convert underutilized existing raw material streams into value-added specialty chemicals and products. The synergy created between naphtha crackers such as Sadara’s mixed feed cracker and other liquid crackers in Saudi Arabia, and the Rufayah chemical complex allows a very dynamic and efficient model to capitalize on available raw materials through sustainable value addition.”
RCC is a local Saudi company established by Global Company for Downstream Industries (GDI) specifically for the utilization of pygas and pyoil, and the production of hydrocarbon resins, among other downstream products in Saudi Arabia.
GDI Chairman Prince Nayef bin Sultan bin Mohammed bin Saud Al-Kabeer said: “The Rufayah complex aligns perfectly with the overall strategies of Saudi Arabia, diversifying the Kingdom’s production portfolio, and promoting further downstream opportunities.”

Source: Arab News