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Sadara and Saudi Electricity Company Sign Power Supply Agreement

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Al Khobar, Saudi Arabia – July 12, 2015 – Sadara Chemical Company (Sadara) has signed a long-term electrical power supply agreement (EPSA) with Saudi Electricity Company (SEC) valued at approximately SAR 14.1 billion payable over a 20-year contract period based on the current industrial tariff established by the Electricity and Co-Generation Regulatory Authority. Commenting on the EPSA, Ziad Al-Labban, Sadara’s Chief Executive Officer, said “The Sadara chemical complex is now more than 94% complete, and we are on schedule to deliver our first products in the second half of 2015. As such, we are currently working to secure and implement all necessary agreements with our business partners and service providers to proceed according to plan with the phased start-up of our facilities, beginning with the pre-commissioning and commissioning phases.”

“This is an exciting time for Sadara, as we work to safely start up our plants and produce our first products. I would like to extend my sincere gratitude to our partners at SEC, who have worked tirelessly with the Sadara team to finalize and secure the EPSA, and ensure that the electrical needs of the Sadara chemical complex are met on time.”

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About Sadara:

Sadara is a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company. With a total investment of about $20 billion, Sadara is building a world scale chemical complex in Jubail Industrial City II in Saudi Arabia’s Eastern Province. Comprised of 26 world scale manufacturing units, the Sadara complex is the world’s largest to be built in a single phase and will be the first in the Middle East to use refinery liquids, such as naphtha, as feedstock. By using best-in-class technologies to crack refinery liquid feedstock, Sadara will enable many industries that either currently do not exist in Saudi Arabia or only exist through imports of raw materials. The adjacent PlasChem Park, a unique collaboration between Sadara and the Royal Commission for Jubail and Yanbu, will create more value downstream, generating unprecedented investment, innovation, economic growth and thousands of jobs. Sadara is on track to deliver its first products in the second half of 2015, with the complex in full operation in 2016.

For further information, please contact:

Max Yasini
Public Affairs Department
Sadara Chemical Company
Email: maxwell.yasini@sadara.com
website: www.sadara.com