Sipchem forms strategic partnership with Linde
7 Dec 2019
Sahara International Petrochemical Company (Sipchem), a world-class integrated petrochemical leader and a company listed on the Saudi Stock Exchange (Tadawul), and Linde announced last Dec. 3, 2019 that they have signed initial terms to establish a strategic partnership for the supply of industrial gases, to meet growing demand from the refining and chemical industries in the Kingdom of Saudi Arabia.
The primary focus of the partnership, which is expected to become operational in 2020, will be the connection via pipeline of existing hydrogen and syngas plants owned by the two parties in Jubail Industrial City, and the development of new production facilities to supply carbon monoxide, hydrogen, syngas and associated gases in industrial clusters in the Kingdom. The partnership will leverage the strengths and footprints of both companies to offer best-in-class solutions primarily to the refining and chemical industries.
“Sipchem is eager to expand its operations to fulfil the growing demand from national refiners and petrochemical plants in the Kingdom”, said Sipchem’s CEO, Eng. Saleh Bahamdan. “This partnership has the potential to blend stable returns with long-term supply commitments, offering us 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”, said Linde’s Executive Vice President EMEA, Eduardo Menezes. “The partnership underpins Linde’s ongoing commitment to support the Kingdom’s Vision 2030 to develop highly efficient and reliable industrial gases facilities.”
Both companies will continue to operate independently outside the terms of the partnership.