Riyadh - Mubasher: Saudi International Petrochemical Company (Sipchem) on Wednesday said it signed a long-term agreement with Saudi Aramco Shell Refinery Company (SASREF).

The deal signed Tuesday involves the supplying Sipchem’s affiliate International Methanol Company (IMC) with carbon dioxide (CO2), the petrochemical firm said in a statement on the Saudi Stock Exchange (Tadawul).

The long-term agreement is a part of the IMC Efficiency Enhancement Project, announced earlier on 8 December 2016.

The Saudi company said that signing this agreement is a continuation of its efforts to utilise all available resources in Saudi Arabia through effective partnerships, in order to maximise the added-value of the company's products and bolster operational and competitive efficiency.

The agreement also “demonstrates the commitment of both parties to the environment by reducing carbon dioxide emissions,” Sipchem added.

The financial impact of this agreement will be positively reflected in Sipchem’s financial statement for the first quarter of 2019 as International Methanol will begin to benefit from the supply of carbon dioxide during Q1-19, the company concluded.

Sipchem last reported an 86.4% year-on-year rise in profits in Q1-17 to SAR 91.7 million from SAR 49.2 million in the same period of 2016.