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Chemanol inks technical licensing agreement for MDEA project

in Downstream, Gases, News
German Energy Regulator Does Not Dwarf Tough Road Ahead
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Methanol Chemicals Co. (Chemanol) has recently signed a significant technical licensing agreement with an international company that holds the proprietary technology for producing methyl diethanolamine (MDEA). This agreement allows Chemanol to leverage advanced technology for the manufacture of MDEA, targeting a production capacity of 25,000 metric tons annually. According to a statement released to Tadawul, the company expects the project to begin its initial operations by the fourth quarter of 2027.

Methyl diethanolamine is a specialized chemical compound with broad applications across various critical industries. It plays a vital role in sectors such as oil and gas, where it is used in processes like gas treatment, extraction of environmentally harmful gases, and carbon capture and storage technologies. The introduction of this new MDEA production project is aimed at strengthening the local production capabilities for such specialized chemicals, which in turn will reduce the country’s reliance on imported MDEA and related compounds. This shift is particularly important for the oil and gas sector, which relies heavily on these chemicals for its operations.

The statement from Chemanol emphasized that while the project’s potential to enhance local chemical production is clear, the precise financial impact remains uncertain at this stage. The company noted that a thorough assessment will be conducted to evaluate the financial and technical aspects of the project once all studies are completed. This assessment will be influenced by various market conditions prevailing at the time of the project’s operational launch. Chemanol has committed to keeping stakeholders informed, promising to announce any significant updates or developments related to the financial implications of the project as they become available.

In summary, this licensing agreement marks a strategic move for Chemanol, positioning the company to advance its production capabilities in the field of specialized chemicals. By reducing dependence on imports and enhancing local manufacturing, the project aligns with broader goals of self-sufficiency and industry advancement in the region. As the project progresses, Chemanol will provide further details on its financial impact and operational milestones, ensuring transparency and keeping interested parties up to date with relevant developments.

Chemanol is a globally recognized, highly integrated producer of methanol, formaldehyde, and their derivatives. It ranks among the world’s largest formaldehyde producers at a single site and is the leading manufacturer of methanol, formaldehyde, and derivatives in the Middle East and North Africa (MENA) region. Chemanol boasts a total annual production capacity of 914,600 metric tons, offering a diverse portfolio of 26 core product grades. These products are distributed to more than 50 countries across the globe and serve over 20 different industries. The company is supported by a dedicated workforce of over 500 employees.

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