Saudi Basic Industries Corp (SABIC) and Saudi International Petrochemical Co(Sipchem) said on Saturday they have agreed to cooperate on the execution of projects.
Under a memorandum of understanding, SABIC will do the cracking of feedstock and provide Sipchem with the ethylene olefin and in exchange Sipchem will provide SABIC wilth carbon monoxide, the two firms said in a statement.
The agreement aims at taking advantage of “production capacity surpluses and using the input materials provided by the petroleum and mining ministry”, they added.
The ministry provides petrochemical firms with feedstock such as naphta.
SABIC is currently executing projects within the kingdom worth SR12bn ($3.2 bn) that would add 623,000 tonnes per year to its overall capacity, while Sipchem has $810m worth of projects in the country to add 325,000 tonnes, the two firms said in the statement.
The projects are expected to start production by mid-2013, they said. (Reuters)
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