INDUSTRIAL manufactuers Sabic and Sembcorp have signed a five-year deal for the supply of steam from a new £36m turbine.

The companies have reached agreement on the supply of Sembcorp steam in varying pressures to Sabic’s Olefins 6 “Cracker” plant at the Wilton International site, near Redcar, east Cleveland.

As well as providing a new customer for high pressure steam from Sembcorp’s new £36m gas turbine, the move also means that in unscheduled flaring situations, Sabic will be able to safely operate at a reduced rate without the need to take the plant offline altogether – saving on the amount of product being flared.

The partnership comes at an important time for both companies, as they seek to minimise the impact of the closures of the Invista, Dow and Croda operations at Wilton in the past year.

Covering the existing supply of intermediate pressure steam to Sabic, the five-year deal also includes provision for an additional 100 tonnes per hour of high-pressure steam if required. The supply will be made via a connection from the new gas turbine into an existing steam pipeline to the Cracker.

Nick Booth, Sembcorp vice-president with responsibility for business development, said: “We are delighted to have reached agreement on this service ,which makes the best and most efficient use of existing Sembcorp and Sabicowned assets.”

Harbinder Bhanvra, European commercial manager for Sabic with responsibility for energy, said: “We are pleased to have reached this agreement with Sembcorp, which allows both companies to optimise their steam production and demand and hence provide a mutual win-win solution for all parties”.