Sipchem inks hydrogen supply deal with Saudi Aramco-Shell JV Sasref
20-year agreement follows similar CO2 supply deal inked between the Saudi Arabian companies in 2017
Sahara International Petrochemical Company (Sipchem) will provide hydrogen gas to Saudi Aramco Shell Refinery Company (Sasref) – a joint venture between oil and gas giants Saudi Aramco and Shell Saudi Arabia Refining – under a 20-year supply deal.
In a statement on Saudi bourse Tadawul, Sipchem said the agreement would have a “positive impact on [its] financial position starting from 2020”.
It added: “This agreement is a continuation of Sipchem’s efforts to utilise all available resources to maximise the added value of the company’s products and enhance its revenues.”
Abdullah Al-Saadoon, Sipchem’s chief executive officer, said the deal was a result of the ongoing collaboration between the companies following a CO2 supply agreement in 2017.
“Both companies will continue to jointly explore growth and site integration opportunities in the future,” the filing read.
The news comes just weeks after Saudi International Petrochemical Company completed its multibillion-dollar merger with Sahara Petrochemicals Company to form Sipchem.
In April 2019, Shell announced that Saudi Aramco would acquire its 50% share of the Sasref JV in Saudi’s Jubail Industrial City for $631m (SAR 2.4bn).
The sale is expected to complete later this year, subject to regulatory approval.