Sadara Chemical Company and Rufayah Chemicals Company (RCC), a Saudi-downstream company, have recently signed a long-term partnership agreement through which 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, a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu (RCJY). The supply agreements will cover a period of 20 years.

The RCC chemical complex will have a total investment of about $500 million, and will utilise the feedstock obtained from Sadara and potentially other liquid crackers in Saudi Arabia, to produce a wide-range of downstream chemical products such as hydrocarbon resin, isoprene, pure DCPD, Aromatic Solvents, Premium Wash Oils and other products. 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.

Mohammad Alazzaz, director of Value Park, Sadara, says: 'We are delighted that RCC has selected PlasChem Park as the site for one of the largest hydrocarbon resin plants in the world, and certainly the biggest undertaking in PlasChem Park thus far. The new RCC plant will produce unique speciality chemicals that will serve the growing speciality chemicals industry in the kingdom and the wider Mena region, filling a gap in local manufacture and supply.'