Dow and Al-Hejailan Group sign MoU


Dow and Al-Hejailan Group have signed a memorandum of understanding to form a joint venture (JV) to design, construct and operate a methyldiethanolamine (MDEA) plant at PlasChem Park in Jubail, Kingdom of Saudi Arabia.

The joint venture will allow Dow and Al-Hejailan to meet the growing demand for natural gas purification in Saudi Arabia and the wider Middle East region.

“Saudi Arabia is an important player in the regional and global petrochemicals market, with further growth expected in the coming years. We are therefore delighted to sign this agreement with Dow, as it aligns with our group’s strategy to participate in the downstream industry,” said Faisal J. Al-Hejailan, CEO of Al-Hejailan Group. “We also appreciate and acknowledge the leading efforts of the Ministry of Energy and the Royal Commission to enable the multiple components of the Saudi industrial base to work together to achieve Vision 2030 in general, and this Al-Hejailan- Dow in particular.”

“This partnership is a demonstration of delivering solutions that will help drive the energy transition forward,” said Howard Ungerleider, Dow president and chief financial officer. “We are delighted with this opportunity with Al-Hejailan and appreciate the instrumental support from the Ministry of Energy and the Royal Commission.”

The joint venture is expected to be built and operated by Al-Hejailan Group. Under the terms of the agreement, Dow will hold a 25% stake and Al-Hejailan will hold a 75% stake in the JV. The facility will use Dow’s manufacturing technologies, and Dow will be responsible for marketing the plant’s MDEA production. Construction of the plant is expected to begin in 2024 and be commissioned in 2025.

Dow will also construct a Dow-owned downstream manufacturing facility, which will source raw materials from the new JV. This new facility will increase the capacity of the company’s high-performance MDEA-based UCARSOL products and will also mix Dow’s AC-CUTRACE fuel markers for the region. This investment will position Dow to enable more local solutions for the energy transition, including the delivery of cutting-edge technology in gas processing, carbon capture and fuel additives to the region. The facility is expected to go live in late 2024.

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