Saudi's Sipchem in CO2 supply agreement with Sasref

Sipchem said the long-term agreement is designed to improve efficiency at its plant in Jubail.

  
Refining and petrochemical facilities of Rabigh Refining & Petrochemical Co. are seen near Jeddah November 12, 2007. Image for illustrative purposes. REUTERS/Ali Jarekji (SAUDI ARABIA)

Refining and petrochemical facilities of Rabigh Refining & Petrochemical Co. are seen near Jeddah November 12, 2007. Image for illustrative purposes. REUTERS/Ali Jarekji (SAUDI ARABIA)

REUTERS/Ali Jarekji
KHOBAR, Saudi Arabia, July 19 (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 542.6 million riyals ($144.6 million) expected to be completed in the fourth quarter of 2018.

The IMC - 65-percent owned by Sipchem, with the rest owned by a group of Japanese companies - has an annual production capacity of 967,000 tonnes 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) ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters Messaging: reem.shamseddine.thomsonreuters.com@reuters.net))


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