RIYADH: US-based Dow has signed a memorandum of understanding with Saudi Arabia-based Al-Hejailan Group to form a joint venture to design, build and operate a methyl diethanolamine plant in the Kingdom, according to a press statement.
The statement revealed that the new MDEA plant will be located in PlasChem Park in Jubail.
Dow said that the joint venture will help meet the growing demand for natural gas purification in Saudi Arabia and in the broader Middle East region.
The statement revealed that Dow will hold a 25 percent stake and Al-Hejailan will hold 75 percent stake in the joint venture.
The facility will use Dow’s manufacturing technologies, and Dow will be also responsible for marketing the plant’s production of MDEA.
The construction of the plant is expected to begin in 2024 and will start its operations in 2025.
“Saudi Arabia is a significant player in both the regional and global petrochemicals market, with further growth expected in the coming years. We are delighted to sign this agreement with Dow, as it aligns with our group’s strategy of participating in the downstream industry,” said Faisal J. Al-Hejailan, CEO Al-Hejailan Group.
