Saudi Arabia’s Methanol Chemicals Company (Chemanol) signed a 240 million Saudi riyal ($64 million) Murabaha financing agreement for its methanol plant expansion project, the company said in a statement to the Saudi stock exchange.

The project will increase the production capacity of the plant, reduce production costs and improve the company’s profitability, the statement said.

In January 2022, Chemanol had awarded preliminary engineering design contract for the expansion project.

In its 2021 board report, the company said it obtained the Ministry of Energy’s approval on 1 March 2020, for allocating the required feedstock to expand the Methanol plant to increase its output by around 100,000 metric tonnes per annum. The output increase will be used to establish new plants, including a dimethyl disulfide (DMDS) plant and a methyl diethanolamine (MDEA) plant, in line with Saudi Vision 2030, the report noted.

(Writing by Senthil Palanisamy; Editing by Anoop Menon)