KSA’s SABIC in talks for $5.3bn Caribbean deal

The Saudi giant is in talks with a Chinese partner to build a methanol complex in Trinidad
KSA’s SABIC in talks for $5.3bn Caribbean deal
Mohamed Al-Mady, Sabic vice chairman and CEO
By Reuters
Sun 12 Feb 2012 10:00 AM

Saudi Basic Industries Corp. (SABIC) and China Petroleum & Chemical Corp (Sinopec) have started negotiations with Trinidad and Tobago to build a $5.3 billion methanol complex on the Caribbean island nation, 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, SABIC 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 percent owned by the government of Saudi Arabia and makes chemicals, fertilizers, 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.

For all the latest GCC news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.