Chemanol signs licensing deal for 25,000 MT Methyl Diethanolamine (MDEA) project

Methanol Chemicals Company (Chemanol) announced on Sunday the signing of a Technical Licensing Agreement with a foreign technology provider for the production of Methyl Diethanolamine (MDEA). The project, with a production capacity of 25,000 metric tons annually, is expected to commence operations in Q4 2027.

In a statement on Tadawul, Chemanol highlighted that MDEA and its specialized compounds are essential in various strategic industries, including oil and gas, environmental gas extraction, and carbon capture and storage technologies. The initiative is aimed at boosting local production of specialized chemicals and reducing dependency on imports, particularly within the oil and gas sector.

Chemanol noted that the financial impact of the project remains uncertain and will be determined following the completion of financial and technical studies, alongside market conditions at the time of launch.