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Saudi state-led petchems giant Sabic has signed a project development agreement with Chinese counterpart Shenhua Ningxia Coal Industry Group (SNCG) which is building a coal-to-liquids plant in northwest China’s Ningxia province.
The planned joint project would process feedstock provided by SNCG following its initial processing of locally-produced coal.
Sabic says the agreement calls for the two parties to conduct a joint feasibility study for the proposed plant by the end of May 2019. Sabic and SNCG would build the plant “in the event of a positive final investment decision and subject to obtaining all necessary government approvals.”
Sabic CEO Yusuf al-Binyan says the agreement “reflects our enthusiasm to diversify our sources of feedstocks, paving the way for further investment opportunities that depend on different and untraditional sources of feedstock.” Sabic has held talks with a number of US shale gas developers with a view to investing in a cracker there, but without reaching a deal. (CONTINUED - 233 WORDS)