Sipchem inks MoU with Linde Plc to develop and operate industrial gas projects in Saudi Arabia

Sahara International Petrochemical Co. (Sipchem) signed a Memorandum of Understanding (MoU) with the multinational industrial gas and chemical company Linde Plc to establish a strategic partnership for the supply of industrial gases in Saudi Arabia, effective until March 2020.

The MoU aims to meet growing demand from the refining and chemical industries, as well as to develop the new production facilities to supply carbon monoxide, hydrogen, syngas and associated gases in industrial clusters in the Kingdom, according to the company’s filing to the Saudi Stock Exchange (Tadawul).

It also intends to connect the pipeline of existing hydrogen and syngas plants owned by the two companies in Jubail Industrial City.

Saudi Arabia's leading petrochemical and chemical manufacturing company noted that the financial impact will be assessed once the negotiation period is concluded and final contracts are finalized.

“Sipchem is eager to expand its operations to fulfil the growing demand from national refiners and petrochemical plants in the Kingdom,” Saleh Bahamdan, CEO of Sipchem, commented on the deal.

He added that the new partnership has the potential to blend stable returns with long-term supply commitments, offering the company the opportunity to manage the typical cyclicality of the petrochemical industry.

“The combined onsite footprint and operation excellence of the two companies will create a compelling opportunity for us and our customers in Saudi Arabia,” Eduardo Menezes, executive vice president of Linde, said in turn.