S Arabia’s Chemanol signs EO supply deal with Sadara Chemical

SINGAPORE (ICIS)–Saudi Arabian producer Methanol Chemicals Co’s (Chemanol) specialty chemicals subsidiary Madarat Al-Dhara Chemicals Co has signed an agreement to secure a long-term supply of ethylene oxide (EO) from Sadara Chemical Company.

The EO supply is intended for Madarat Al-Dhara’s methyl diethanolamine (MDEA) and choline chloride projects, Chemanol said in a filing to the Saudi bourse, Tadawul, on 29 August.

Details on cost and volume of the EO supply deal were not disclosed.

“Chemanol aims to become one of the largest producers of specialty petrochemicals in the region given that all targeted products would be the first of their kind in the region,” the company said.

Financial and capacity details of the MDEA and chlorine chloride projects were not disclosed.

“Such products would be used in many vital and strategic industries such as oil and gas Industry, nutrition additives industry, extraction of environmental harmful gases, carbon capture and storage technologies and others.”

MDEA is crucial for gas purification, while choline chloride plays roles in animal nutrition, chemical processes, and industrial applications.

In May, Chemanol completed its Saudi riyal (SR) 80 million ($21 million) acquisition of an 80% stake in Global Company for Chemical Industries (GCI), a specialty and fine chemicals manufacturer.

The company is aiming to expand its specialty chemicals market share and diversify its product offerings.