Saudi Sabic, Osos Sign Deal For $1 Bln Yanbu Petchem Project

Saudi Sabic, Osos Sign Deal For $1 Bln Yanbu Petchem Project
Τετ, 16 Ιανουαρίου 2008 - 01:47
Saudi Basic Industries Corp., the world's largest petrochemicals company by market value, said Tuesday it signed a preliminary deal to develop a $1 billion petrochemicals project at the Red Sea city of Yanbu.
Saudi Basic Industries Corp., the world's largest petrochemicals company by market value, said Tuesday it signed a preliminary deal to develop a $1 billion petrochemicals project at the Red Sea city of Yanbu.

Sabic said it will hold a 35% stake in the joint venture with Saudi-based Osos Petrochemicals.

A final agreement will be signed in two months after conducting feasibility studies, Sabic said in a statement on the Saudi bourse website.

Saudi-based petrochemical producers including Sabic benefit from widely available and cheap feedstock in the desert kingdom, holder of the world's largest oil and the fourth-largest gas reserves.

This in turn gives companies a competitive advantage as they convert cheaply priced gas derivatives such as ethane into intermediate petrochemicals used to make plastics.

The kingdom's overall petrochemicals output is expected to rise to 75 million tons a year by 2010 from 40 million tons a year in 2005.

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