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Sabic and Sipchem Sign Tolling Deal To Supply Planned Sipchem Complex

10:49 AM MDT | May 22, 2009

Sabic and Saudi International Petrochemical Co. (Sipchem; Al Khobar, Saudi Arabia) have signed an agreement that paves the way for Sipchem to build nine previously announced downstream petrochemical plants at Al-Jubail, Saudi Arabia for completion in 2013. The deal is based on a toll manufacturing agreement, exclusively reported in CW, under which Sabic will produce olefins and supply them as raw materials to the Sipchem facilities (CW, Jan. 5/12, p. 18). The combined cost of the projects is estimated at SR12 billion ($3.2 billion). Sipchem’s proposed...

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