Riyadh – Sabic and Shenhua Ningxia Coal Industry Group Co. Ltd (SNCG) are studying plans to jointly establish a greenfield petrochemical complex in China, Sabic announced 31 May.
The joint-venture project, said Sabic, would be located in the Ningxia Hui Region of China, and utilise locally available coal feedstocks to be supplied by SNCG, part of Shenhua Group Corp. Ltd.
Under a project development agreement (PDA), initiated on 31 May, the parties are to conduct a joint feasibility study on the project, within three years starting from the date when the agreement became effective.
Subject to a positive outcome, the companies would seek ‘project application report’ approval (PAR Approval) from China’s National Development and Reform Commission.
“This project reflects our enthusiasm to diversify our sources of feedstock, paving the way for further investment opportunities that depend on different and untraditional sources of feedstock,” said Yousef Al-Benyan, Sabic vice chairman & CEO.
“This protects Sabic against the fluctuations and cyclical movements in feedstock price in the international markets, which helps ensure a profitable growth strategy,” he added.