Chemanol inks technical licensing agreement for MDEA project

Methanol Chemicals Co. (Chemanol) signed a technical licensing agreement with a foreign company that owns the technology to produce methyl diethanolamine (MDEA) at a production capacity of 25,000 metric tons per year.

In a statement to Tadawul, the company said the project’s initial operation is expected in Q4 2027.

MDEA and its specialized compounds are used in many vital industries such as oil and gas, extraction of environmental harmful gases and carbon capture, and storage technologies.

The project aims to enhance the local production of specialized chemicals, and reduce dependence on imports, specifically in the oil and gas sector, the statement added.

The financial impact of the project is currently indeterminable until all financial and technical studies are finalized and depending on the market variables prevailing at the time of operation, the company noted, adding that any developments will be announced.