Dow and the Al-Hejailan Group signed a Memorandum of Understanding (MoU) to form a joint venture to design, build and operate a methyl diethanolamine (MDEA) plant in the PlasChem Park in Jubail, Kingdom of Saudi Arabia. The joint venture will enable Dow and Al-Hejailan to meet growing demand for natural gas purification in Saudi Arabia and in the broader Middle East region. The JV is expected to be built and operated by the Al-Hejailan Group.

Under the terms of the agreement, Dow will hold 25% stake and Al-Hejailan will hold 75% stake in the joint venture. The facility will utilize Dow's manufacturing technologies, and Dow will be responsible for marketing of the plant's production of MDEA. The construction of the plant is expected to begin in 2024 and to come online in 2025.

In addition to the joint venture, Dow will also build a Dow-owned downstream manufacturing facility which will source raw materials from the new JV. This new facility will expand capacity of the Company's MDEA-based high performance UCARSOL™ products and will also blend Dow's ACCUTRACE™ fuel markers for the region. This investment will position Dow to further enable local solutions for the energy transition, including delivery of industry leading gas treating, carbon capture, and fuel additive technology to the region.

The facility is expected to come online in late 2024.