SABIC, Sinopec to team up on projects worth SAR 15 bln

Saudi Basic Industries Corp (SABIC) has teamed up with China Petroleum and Chemical Corporation (Sinopec) to work on three projects at an estimated cost of SAR 15 billion ($4 billion), Chinese state news agency Xinhua reported, citing SABIC’s chairman Prince Saud bin Abdullah bin Thunayan.

The projects include expansions in the Tianjin and polycarbonate plants in China, along with another facility in Saudi Arabia.

Prince Saud added that the new projects will be financed from the company’s internal resources and bank loans.

Meanwhile, he dismissed floating the new facilities in initial public offerings (IPOs), adding that no new entities will be established. 

Implementation of SABIC’s coal-based petrochemical complex, a joint venture with Shenhua Ningxia Coal Industry Group (SNCG), will begin after the project studies have been completed.

Last week, the giant petrochemical producer signed a strategic cooperation agreement with Sinopec to study opportunities for joint projects in Saudi Arabia and China, Argaam reported.