Saudi's Sipchem in CO<sub>2</sub> supply agreement with Sasref
KHOBAR, Saudi Arabia (Reuters) — Saudi International Petrochemical Co (Sipchem) said on Wednesday its methanol affiliate will start receiving supplies of carbon dioxide feedstock from Saudi Aramco Shell Refinery (SASREF) in the first quarter of 2019.
Sipchem said the long-term agreement is designed to improve efficiency at its plant in Jubail.
In December, the International Methanol Co (IMC) signed a contract with South Korea's eTEC E&C for work costing $144.6 MM expected to be completed in the fourth quarter of 2018.
The IMC—65% owned by Sipchem, with the rest owned by a group of Japanese companies—has an annual production capacity of 967,000 t of methanol.
Sipchem said in the statement on Wednesday the positive financial impact from the supply agreement will start from the first quarter of 2019.
Reporting by Reem Shamseddine, editing by Louise Heavens
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