30 May 2016
DETAILS
has signed a Project Development Agreement (PDA)
with
Shenhua Ningxia Coal Industry Group Co. Ltd. (SNCG),
a subsidiary of Shenhua Group Corporation Limited,
to be effective by May 30, 2016.
The PDA relates to the two parties’ potential
joint development of a greenfield petrochemical complex
to be located in the Ningxia Hui Region of China.
The parties would proceed with further actions
to implement the project
in the event of a positive final investment decision and
subject to obtaining all necessary governmental approvals.
The joint venture would benefit from
its location in Ningxia and utilize
locally available coal feedstocks to be supplied by SNCG.
The PDA provides a basis for the parties
to conduct a joint feasibility study on the project,
within three years starting from the date
when the agreement became effective, and,
subject to a positive outcome, to prepare and submit
the materials necessary to obtain
Project Application Report approval (PAR Approval)
from the National Development and
Reform Commission (NDRC) of the Peoples’ Republic of China.
This project is part of SABIC’s ongoing strategy
to geographically diversify its operations and
to seek future investment opportunities that
opens doors to new markets.
SABIC will announce further details in due course.
HRH Prince Saud Bin Abdullah Bin Thenayan Al Saud,
Chairman of the Royal High Commission
for Jubail and Yanbu and
Chairman of SABIC
“This agreement clearly reflects SABIC’s desire
to expand its global operations and get ever closer
to our customers.
SABIC’s ongoing strategy is to geographically diversify
our operations and seek future investment opportunities
that open doors to new strategic markets.”
Yousef Al-Benyan
SABIC Vice Chairman & CEO
“This project reflects our enthusiasm to diversify
our sources of feedstock, paving the way
for further investment opportunities that
depend on different and untraditional sources of feedstock.
This protects SABIC against
the fluctuations and cyclical movements in feedstock price
in the international markets, which helps
ensure a profitable growth strategy.”
Contact Sabic
Yaarob Al-Thenayan
Director, Global Media
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