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“Saudi Arabia is a significant player in both the regional and global petrochemicals market, with further growth expected in the coming years,” said Faisal J. Al-Hejailan, CEO of the Al-Hejailan Group. Therefore, we are happy to sign this contract because it fits with our group’s plan to take part in the downstream industry.
We also recognise and appreciate the Ministry of Energy’s and the Royal Commission’s pioneering efforts in enabling the various sectors of Saudi Arabia’s industrial base to collaborate in order to carry out Vision 2030 in general and this agreement in particular.
“This partnership is a demonstration of delivering solutions that will help advance the energy transition,” added Howard Ungerleider, president and CFO of Dow. We are enthusiastic about this chance to work with Al-Hejailan and grateful for their crucial assistance, as well as that of the Royal Commission.
The Al-Hejailan Group is anticipated to construct and run the JV. According to the terms of the agreement, the company will own a 25% stake in the joint venture, while Al-Hejailan will own a 75% stake.
The facility will make use of the business’ manufacturing technologies, and Page 2 of 2 ®TM Trademark of The Dow Chemical Company or a subsidiary will be in charge of marketing the MDEA produced at the facility. The plant is anticipated to start construction in 2024 and go online in 2025.
The business will create a downstream manufacturing facility in addition to the joint venture, which will source its raw materials from it. This new facility will increase the production of the company’s high-performance, MDEA-based UCARSOLTM products and blend the ACCUTRACETM fuel markers for the area.
With this investment, Dow will be better positioned to support regional energy transition strategies, such as bringing industry-leading gas treating, carbon capture, and fuel additive technologies to the area. In late 2024, the facility is anticipated to be operational.
Dow and Al-Hejailan Group Sign MOU to Build MDEA Plant in Saudi Arabia
In a significant move aimed at advancing Saudi Arabia’s industrial capabilities and strengthening its chemical manufacturing sector, Dow Chemical Company and Al-Hejailan Group have entered into a Memorandum of Understanding (MOU) to establish a new Methyl Diethanolamine (MDEA) plant in the Kingdom. This collaboration marks a strategic step toward enhancing local production of advanced chemical products, boosting the country’s economic growth, and aligning with Saudi Arabia’s Vision 2030, which focuses on diversifying its industrial base and reducing reliance on oil exports.
The MDEA plant will be a key player in the growing demand for chemicals used in natural gas treatment, particularly in the oil and gas industry. MDEA is widely used to remove carbon dioxide and hydrogen sulfide from natural gas and other petrochemical products, making it essential for refining and petrochemical operations. The establishment of the plant will help meet the rising demand for MDEA, providing a vital solution for the region’s energy and industrial sectors while contributing to the sustainability and environmental goals of the Kingdom.
The collaboration between Dow, a global leader in materials science, and Al-Hejailan Group, a prominent Saudi Arabian industrial player, reflects a commitment to local manufacturing, knowledge transfer, and technological advancement. The MOU outlines a partnership where both entities will jointly design, build, and operate the MDEA facility.
ensuring the highest standards of operational excellence and innovation. Dow’s vast expertise in Group’s strong local presence and experience in the Saudi market, positions the partnership to make a significant impact on the Kingdom’s industrial landscape.
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