Marafiq, the utility company for Jubail and Yanbu Industrial Cities, and Sadara Chemical Company have signed an agreement for the supply of desalinated water for industrial use at Sadara's complex in Jubail Industrial City II.

Sadara is the joint venture formed between Saudi Aramco and The Dow Chemical Company to develop an integrated chemicals complex in Jubail II. When completed, the Sadara complex will represent the largest petrochemical facility ever built in a single phase.

The Marafiq-Sadara agreement was signed by the president and CEO of Marafiq, Thamer Al-Sharhan, and the CEO of Sadara, Ziad Al-Labban. The signing ceremony was attended by senior executives of both companies.

The agreement was signed under the patronage of Prince Saud bin Abdullah bin Thunayan Al-Saud, chairman of the Royal Commission for Jubail and Yanbu and Chairman of Marafiq.

The agreement involves the construction of a seawater reverse osmosis desalination plant on the Sadara site in Jubail II, fed by Marafiq's seawater supply to Jubail II. The plant's entire output will be for the exclusive use of Sadara. It will be established on a build, operate and own (BOO) basis.

The desalination plant, which will have a capacity of 148,800 cubic meters per day, is expected to be commissioned by the third quarter of 2015, before which Marafiq will supply Sadara temporarily from the Jubail Industrial Potable Water system.

The supply contract between the two companies is for a period of 20 years, with the option of extending it for another ten years. The supply agreement is based on a take-or-pay arrangement.

"This will be the first project of its kind to be built by Marafiq within the customer's premises", said Al-Sharhan. "It heralds a new era of relationships between the industries as our customers, and Marafiq as utility provider. What is more, the project will create multiple direct and indirect job opportunities for Saudi nationals", he said. He concluded that "Marafiq is very excited of this opportunity and we will do whatever it takes to successfully execute this project.