SABIC, China’s Shenhua to cooperate on coal-based JV

Saudi Basic Industries Corp (SABIC), along with Shenhua Ningxia Coal Industry Group Co. Ltd. (SNCG) and the Ningxia Hui government, agreed to cooperate on developing a potential joint venture (JV) between SABIC and SNCG to build a coal-to-chemicals complex.

The project will focus on highly-differentiated applications and segments through producing polymer derivatives, the Saudi petrochemical giant said in a statement Wednesday.

The facility will be established in the Ningxia Hui region, where the government will provide certain incentives for the project.  

The agreement between both parties provides a trilateral framework for coordination with respect to obtaining regulatory approvals for the project.

“We look to further SABIC’s investment in the Chinese economy and our strategic engagement with key participants in the Chinese petrochemicals industry,” said chief executive Yousef A. Al-Benyan.

SABIC in May had inked an agreement with SNCG to jointly develop the greenfield petrochemical complex in the Ningxia Hui region.