Riyadh – Mubasher: Sahara International Petrochemical Company (Sipchem) and Linde GMBH signed an exclusive partnership agreement for a 50/50 joint venture (JV) to develop industrial gases projects and networks in Saudi Arabia.

The 20-year JV aims to build up a world-class industrial gases network in Jubail Industrial City by connecting, via pipeline, the existing hydrogen and syngas plants owned and operated by the two parties, according to a bourse disclosure on Tuesday.

“The main focus will be on the development of new production facilities in order to supply carbon monoxide, hydrogen, syngas ammonia, and associated gases alongside efficient solutions for the decarbonisation of downstream production in industrial clusters in the kingdom,” the statement read.

Moreover, the strategic JV is expected to open the door to substantial investment opportunities of approximately $500 million over the next five years subject to the economic viability.

In a separate filing, Sipchem said it plans to mothball the Polybutylene Terephthalate (PBT) plant owned by its affiliate Sipchem Chemical Company, and Ethylene Vinyl Acetate (EVA) Film, owned by Saudi Specialized Products Company, an affiliate.

“Steps to give effect to this decision are underway. Mothball of both plants will start on 1 January 2021 until further notice,” the statement noted. 

The mothball of these two plants is expected to reflect positively on the company's financials starting from the first quarter (Q1) of 2021.