Taqa, Halliburton sign deal for Saudi plant
Chemical manufacturing plant to be built in Jubail Industrial City in Saudi Arabia
Industrialisation & Energy Services Company Taqa and US- based Halliburton Multi-Chem will set up a chemical manufacturing plant in Jubail Industrial City in Saudi Arabia, Trade Arabia has reported.
The construction work for the plant will start this year with production being planned in the fourth quarter of 2016.
The industrial complex will produce specialty chemicals related to the oil and gas and energy sectors serving local and international oil and gas, power and electricity markets.
Oil and gas giant Saudi Aramco has been named as a priority customer.
The plant will be located in Eastern Province, PlasChem Park in Jubail Industrial City II– a $14bn collaboration between Sadara Chemical Company and the Royal Commission for Jubail and Yanbu (RCJY).
The new joint venture will support exploration and production operations in the Kingdom and offer chemical products needed by the local and Middle East markets, said Abdulrahman Bin Zarah, the president of Taqa.
"This project should provide a safe supply of raw materials and increase the sales of chemical products both locally and internationally," he added.
"Furthermore, the large group of chemicals that will be produced in the plant will enhance the role of the chemical industry sector and contribute to the establishment of more downstream investment projects in Saudi Arabia."
"Additionally, it will enable Taqa to achieve one of its strategic goals, through extending the foundation of the national economy and supporting the efforts to diversify the Kingdom’s economy, contributing to the creation of direct and indirect jobs created by these technical industries.”
"By signing this agreement with Halliburton, we are increasing Taqa's commitment and presence in the oil and gas sector in the Kingdom by adding local manufacturing capabilities and transfer technology in the oil and gas sector in Saudi Arabia," said Mohammed Rafie, the chairman of Taqa.