Saudi Aramco to supply Sadara with feedstock

Riyadh – Mubasher: Sadara Chemical Company (Sadara) has signed a temporary agreement with Saudi Aramco to supply its subsidiary Sadara Basic Services Company with feedstock.

Sadara uses ethane, dry gas, naphtha, and other refinery liquids from Aramco and third parties to produce its products at the Sadara chemical complex located in Jubail Industrial City II, according to a statement to the Saudi Stock Exchange (Tadawul) on Tuesday.

Under the deal, Aramco, the world's largest oil producer, will provide Sadara with natural gas feedstock, up to the maximum volume on a daily basis.

“The quantity of naphtha feedstock which Sadara is entitled to nominate and purchase under the Naphtha Feedstock Supply Agreement shall be reduced by an amount equal to the quantity of NG that Sadara nominates under the NG Feedstock Supply Agreement, subject to a conversion factor,” the statement added.

Sadara Basic Services Company is indirectly 100% subsidiary of Sadara Chemical Company (Sadara).