Sabic to decide on $30bn plant development in Q2
RIYADH, October 7, 2015
Saudi Basic Industries Corporation (Sabic), one of the world's largest petrochemicals groups, expects to make a decision in the second quarter of 2016 on whether to go ahead with a $30-billion oil-to-chemicals plant project, its chief executive said.
Confirming the potential investment size of the project, Sabic's acting vice chairman and CEO Yousef Abdullah Al Benyan said the economics of the project were being assessed and there was a 50/50 chance it would proceed.
If it went ahead, he told Reuters in an interview in Seoul, the crude to supply the plant planned for Yanbu on the west coast of Saudi Arabia would be procured at market rates.
"It's a very large project, and that's why it requires more deep analysis and assessment," he said. "This is the type of project that really you need to assess because current crude prices influence the outcome of the project."
He added: "Probably second quarter of next year, we'll have more clarity on where this project stands."
Last year, Sabic said it expected the proposed oil-to-chemicals plant to start operations by the end of 2020.-Reuters
