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Saudi state petchems giant Sabic has agreed principles for cooperation with China’s Shenhua Ningxia Coal Industry Group (SNCG) and the Government of northwest China’s Ningxia province to develop a coal-to-chemicals complex.
The agreement was signed during a visit by a Saudi energy delegation to China led by Deputy Crown Prince Muhammad bin Salman. The deal is part of the Chinese government’s ‘Belt & Road’ economic initiative – Ningxia province is on the old Silk Road trade route – under which it envisages closer ties with Saudi Arabia.
Sabic and SNCG have already signed a project development agreement, which calls for completion of a joint feasibility study by the end of May 2019 (MEES, 3 June). Sabic CEO Yusuf al-Binyan told Al Arabiya TV that the project is expected to cost $3-4bn and that the partners would be ready to begin development in 2020. (CONTINUED - 331 WORDS)