Sadara Chemical Company has temporarily shut down production at its Jubail site due to supply-chain disruptions, subsidiary Sadara Basic Services said in a Tuesday stock market disclosure.
Citing “several factors, including ongoing disruption to Sadara’s supply chains,” for the shutdown, Sadara Basic Services said it was unable to provide an estimate for the resumption of production. The shutdown follows continued disruption to shipping through the Strait of Hormuz and comes after Iran threatened the Jubail petrochemicals complex with missile strikes in March.
Sadara is a joint venture between Saudi Aramco and US chemical and materials science company Dow, and its Jubail facility has the capacity to produce 1.5 million tonnes per year (tpy) of ethylene and 400,000 tpy of propylene, according to Argus, as well as 150,000 tpy of ethanolamines that it supplies to chemical manufacturer Sabic.
Sabic had declared force majeure on its supply of ethanolamines in late March. Dow, which markets a significant portion of Sadara’s ethanolamines, declared force majeure in early March due to logistics disruptions caused by the US-Israeli war on Iran, which impeded loading export volumes at Jubail.
