Sabic, Sinopec in talks over $5bn methanol plant
Jeddah, February 11, 2012
Saudi Basic Industries Corporation (Sabic) and China Petroleum & Chemical Corp (Sinopec) have started negotiations with Trinidad and Tobago to build a $5.3 billion methanol complex there, Sabic said on Saturday.
Sabic and its Chinese partner obtained the approval of Trinidad and Tobago on Feb. 9 after bidding against other international companies, the company said in a statement on the Saudi bourse website.
'This approval marks the launch of negotiations to build the complex and is not binding to either side until final agreement is reached,' Sabic added.
It did not set a timeframe for the final agreement nor the capacity of the plant which will produce methanol and then convert it to olefins.
Sabic, the world's largest petrochemical company by market value, is 70 per cent owned by the government of Saudi Arabia and makes chemicals, fertilisers, plastics and metals used in paint, rubber, textiles, cleaning and other consumer products.
The firm also has an agreement with Sinopec to build a $1 billion-plus polycarbonate plant in Tianjin where the two companies have already started operating a petrochemical joint venture in 2010.-Reuters
More Energy, Oil & Gas Stories
- ASAR named legal advisor for Kuwait project
- BP to invest $2.85bn in Iraq's largest oilfield
- 200 firms gear up for Saudi Energy
- Siemens wins $266m jobs from Saudi Electricity
- Forum focus on solar desalination
- Oman launches ME-first solar driven oil recovery
- Kuwaiti oil service workers on strike over pay
- Aramco awards Midyan project to L&T
- Taqa looking at share options
- Aramco seeks bids for power plant