Sadara Chemical EO/PO Pipeline Project Reaches Mechanical Completion

Sadara Chemical Company, a joint venture of two major chemical corporations, Saudi Aramco and the Dow Chemical Company, celebrated the mechanical completion of its Ethylene Oxide (EO) /Propylene Oxide (PO) feedstock Pipeline and Distribution Centre project on September 2, 2021. The project is aimed towards transporting EO and PO feedstocks to the business tenants located at PlasChem Park. The project marks the building of a 6.8 km long EO pipeline and a 6.2 km long PO pipeline, both having their destination at PlasChem Park which is Sadara and the Royal Commission for Jubail and Yanbu co-partnered chemicals and downstream product conversion belt located in the Jubail Industrial City II.

EO and PO are used as raw materials for manufacturing numerous downstream chemicals that find applications in sectors like automotive, personal care, agrochemicals, pharmaceuticals, textiles, domestic cleaners, water treatment, mining, paints and coatings etc. With the construction of Saudi’s first EO/PO feedstock transport mechanism, Sadara intends to strengthen the country’s downstream business verticals and create enhanced market opportunities for its products at the global level.

As per ChemAnalyst, Sadara’s uniquely derived pipeline project will bridge the gap between the EO/PO production units and the downstream industrial belt through its good connectivity and sound transportation system. This will aid to enhance a production base of the country’s petrochemicals and related segments which in turn is expected to fulfil the country’s consumption as the EO and PO markets are tight in terms of supply. The enhanced production of the downstream products may aid in stabilizing their prices for a considerable time period.