Saudi firm in speciality JV

Chemanol, a Saudi producer of methanol chemicals, has signed a joint venture pact with its compatriot Global Company for Downstream Industries (GDI) to establish a 60-40 joint venture (JV) to produce speciality chemicals. The company aims to establish itself as a major player in this field in the region.

The JV will be based in Jubail Industrial City and will produce methyl diethanolamine, choline chloride dimethyl disulfide, dimethyl sulfate, chlorine derivatives, poly alpha olefins and aromatic solvents. These will be used in the oil and gas, pharmaceuticals, fertilisers, construction materials, fuel refinery, gas extraction, carbon capture and storage, catalyst recycling and paint markets.

This follows an agreement between Chemanol and GDI in October 2022, which was focused on diethanolamine and choline chloride, and was said to be worth about $133 million. They also agreed to “explore the possibility of manufacturing other chemical materials”, listing those now included in the new agreement.

The two firms are now preparing economic and technical feasibility studies for future projects, applying for approvals and licences, and looking for global technology providers. Further announcements will be made in due course.