The Sadara Chemical Company (Sadara) has entered into definitive agreements with a number of export credit agencies, commercial banks and the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia for approximately $10.5 billion of additional project financing.
The financing supplements the $2 billion raised through a Sukuk islamic bond issuance in April, 2013, bringing the total Sadara project financing raised to approximately $12.5 billion, which will be used to fund the construction and start-up of the joint venture.
“These financing agreements demonstrate the significant progress that Sadara has made since we signed the JV agreement with our partner Dow in 2011,” said Khalid A. Al-Falih, president and CEO, Saudi Aramco.
Once complete, Sadara will be the largest chemicals complex ever built in a single phase. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products.
The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.
Sadara will also facilitate the development of conversion industries in Jubail and in the Kingdom in general, and the project and its conversion park will provide thousands of direct and indirect job opportunities.
Sadara and the adjoining conversion parks are located in the premier industrial site developed and administered by the Royal Commission of Jubail and Yanbu’. Sadara will establish a world-scale manufacturing footprint that delivers a full range of value added, finished products destined for the emerging markets of Asia, the Middle East, Eastern Europe and Africa.
Dow’s commitment to Sadara has made this the largest American investment in Saudi Arabia, in fact, it makes it the largest investment by any country or company in the Kingdom. Total investment for the project, including third party investments will be approximately $20 billion.
The project is expected to deliver annual revenues of approximately $10 billion within a few years of operation, while contributing significantly to the country’s industrial and economic diversification.
The finalization of the project financing highlights the region’s commitment to developing the Kingdom’s economy and its strategic decision to create more revenue streams for its vast hydrocarbon riches.
Many of Sadara’s products will be produced for the first time in Saudi Arabia and the Middle East, the project will introduce elastomer plants and the first polyurethane plants in the Kingdom, and will be the first complex that will crack liquid Naptha in the country.
“Petrochemical projects in the Middle East are unique in their advantages and their challenges. The region is naturally blessed with an abundance of resources that results in access to advantaged feedstock,” said Carol Williams, executive VP of manufacturing and engineering at the Dow Chemical Company in an exclusive interview with Refining and Petrochemicals Middle East.
Sadara will have access to both gas and liquid feedstocks. Gas-based feedstocks will be fed by numerous gas plants in Saudi Aramco’s Master Gas System, including the nearby Ju-aymah, Berri, Khursaniyah, and Wasit gas plants.
Liquid feedstocks will be available from refined products at Aramco’s two adjacent joint venture refineries in Jubail, Sasref and Satorp, and from the flagship Ras Tanura refinery nearby. The project’s first production units will come on-line in 2015 and all units are expected to be up and running in 2016.
Refining and Petrochemicals Middle East also spoke exclusively with Ziad Al-Labban in Saudi Arabia soon after he took over as the CEO of the company to build and operate the project.
He explained how the challenges involved in delivering the mammoth Sadara project are human-centric, with success hinging on the company’s ability to assemble and direct the right teams to safely and reliably build and operate the facilities.
“Sadara is an unprecedented undertaking and my focus is to have the best practices in place to ensure safe and reliable operations in a cost effective manner,” said Al-Labban. The project staff will peak at over 60,000 workers building and operating machinery on the work site. By the end of 2012, there were already more than 7,000 workers on site.
“During Sadara’s steady operations, we expect the number of personnel to range between 2,500 and 3,500 depending on operational requirements. Clearly staffing levels will be higher during the initial start-up phase and during turn-arounds,” he explained.
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All about the money
Saudi Aramco finalises $10.5b financing for the massive Sadara project
The Sadara Chemical Company (Sadara) has entered into definitive agreements with a number of export credit agencies, commercial banks and the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia for approximately $10.5 billion of additional project financing.
The financing supplements the $2 billion raised through a Sukuk islamic bond issuance in April, 2013, bringing the total Sadara project financing raised to approximately $12.5 billion, which will be used to fund the construction and start-up of the joint venture.
“These financing agreements demonstrate the significant progress that Sadara has made since we signed the JV agreement with our partner Dow in 2011,” said Khalid A. Al-Falih, president and CEO, Saudi Aramco.
Once complete, Sadara will be the largest chemicals complex ever built in a single phase. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products.
The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.
Sadara will also facilitate the development of conversion industries in Jubail and in the Kingdom in general, and the project and its conversion park will provide thousands of direct and indirect job opportunities.
Sadara and the adjoining conversion parks are located in the premier industrial site developed and administered by the Royal Commission of Jubail and Yanbu’. Sadara will establish a world-scale manufacturing footprint that delivers a full range of value added, finished products destined for the emerging markets of Asia, the Middle East, Eastern Europe and Africa.
Dow’s commitment to Sadara has made this the largest American investment in Saudi Arabia, in fact, it makes it the largest investment by any country or company in the Kingdom. Total investment for the project, including third party investments will be approximately $20 billion.
The project is expected to deliver annual revenues of approximately $10 billion within a few years of operation, while contributing significantly to the country’s industrial and economic diversification.
The finalization of the project financing highlights the region’s commitment to developing the Kingdom’s economy and its strategic decision to create more revenue streams for its vast hydrocarbon riches.
Many of Sadara’s products will be produced for the first time in Saudi Arabia and the Middle East, the project will introduce elastomer plants and the first polyurethane plants in the Kingdom, and will be the first complex that will crack liquid Naptha in the country.
“Petrochemical projects in the Middle East are unique in their advantages and their challenges. The region is naturally blessed with an abundance of resources that results in access to advantaged feedstock,” said Carol Williams, executive VP of manufacturing and engineering at the Dow Chemical Company in an exclusive interview with Refining and Petrochemicals Middle East.
Sadara will have access to both gas and liquid feedstocks. Gas-based feedstocks will be fed by numerous gas plants in Saudi Aramco’s Master Gas System, including the nearby Ju-aymah, Berri, Khursaniyah, and Wasit gas plants.
Liquid feedstocks will be available from refined products at Aramco’s two adjacent joint venture refineries in Jubail, Sasref and Satorp, and from the flagship Ras Tanura refinery nearby. The project’s first production units will come on-line in 2015 and all units are expected to be up and running in 2016.
Refining and Petrochemicals Middle East also spoke exclusively with Ziad Al-Labban in Saudi Arabia soon after he took over as the CEO of the company to build and operate the project.
He explained how the challenges involved in delivering the mammoth Sadara project are human-centric, with success hinging on the company’s ability to assemble and direct the right teams to safely and reliably build and operate the facilities.
“Sadara is an unprecedented undertaking and my focus is to have the best practices in place to ensure safe and reliable operations in a cost effective manner,” said Al-Labban. The project staff will peak at over 60,000 workers building and operating machinery on the work site. By the end of 2012, there were already more than 7,000 workers on site.
“During Sadara’s steady operations, we expect the number of personnel to range between 2,500 and 3,500 depending on operational requirements. Clearly staffing levels will be higher during the initial start-up phase and during turn-arounds,” he explained.
Staff Writer
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and... More by Staff Writer
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