Saudi Arabia’s Sabic has signed a project development agreement (PDA) with Shenhua Ningxia Coal Industry Group Co Ltd (SNCG), a subsidiary of Shenhua Group Corporation Limited, for setting up a greenfield petrochemical complex at Ningxia Hui region of China.
Two companies will proceed with further actions to implement the project in the event of a positive final investment decision and subject to obtaining all necessary governmental approvals. The joint venture would benefit from its location in Ningxia and utilise locally available coal feedstocks to be supplied by SNCG.
The PDA provides a basis for the parties to conduct a joint feasibility study on the project, within three years starting from the date when the agreement became effective.
This project is part of Sabic’s ongoing strategy to geographically diversify its operations and to seek future investment opportunities that opens doors to new markets. Sabic will announce further details in due course.
Yousef Al-Benyan, vice chairman & CEO, Sabic, commented, “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. This protects Sabic against the fluctuations and cyclical movements in feedstock price in the international markets, which helps ensure a profitable growth strategy.”
Two companies will proceed with further actions to implement the project in the event of a positive final investment decision and subject to obtaining all necessary governmental approvals. The joint venture would benefit from its location in Ningxia and utilise locally available coal feedstocks to be supplied by SNCG.
The PDA provides a basis for the parties to conduct a joint feasibility study on the project, within three years starting from the date when the agreement became effective.
This project is part of Sabic’s ongoing strategy to geographically diversify its operations and to seek future investment opportunities that opens doors to new markets. Sabic will announce further details in due course.
Yousef Al-Benyan, vice chairman & CEO, Sabic, commented, “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. This protects Sabic against the fluctuations and cyclical movements in feedstock price in the international markets, which helps ensure a profitable growth strategy.”
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%