Sadara Chemical has awarded a long-term contract to Linde to supply carbon monoxide (CO), hydrogen (H2) and ammonia (NH3) for Sadara's chemical complex being built in Jubail, Saudi Arabia.
As part of the on-site gases supply contract, Linde will invest $380m to construct a two-stream HyCO plant for the production of CO and H2, as well as an NH3 plant, producing waterless liquid ammonia.
Linde is also expected to deploy an NH3 storage tank to enable the plant to run smoothly.
Sadara will use CO, H2 and NH3 mainly to manufacture aromatics, isocyanates such as methylene diphenyl diisocyanate (MDI), and 2,4 toluene diisocyanate (TDI), amines, and hydrogen peroxide.
Linde executive board member Aldo Belloni said the project is Linde's largest on-site petrochemical project in the region, and the first in Jubail.
"It thus strengthens our position as a global leader in the generation and supply of carbon monoxide for MDI and TDI production plants at integrated chemical hubs," Belloni added.
"The petrochemical industry is expanding rapidly in Saudi Arabia. We expect that this growth will give added momentum to the expansion of our gases and engineering business in the Middle East."
Scheduled to be ready in 2015, the production facilities will be operated by Linde's gases division.
Established in October 2011, Sadara is a joint venture between Saudi Arabian Oil Company and Dow Chemical.