Chevron Phillips Chemical and Saudi Industrial Investment Group plan to borrow US$1.8 billion to help finance National Chevron - a US$5 billion petrochemical plant they will build at al-Jubail, eastern Saudi Arabia. A group of local and international banks have been invited to underwrite 15-year loans for the National Chevron Phillips project by the end of next month. Banks are being asked to contribute between US$125-250 mln each to the transaction. The rest of the funding will come from the companies, Saudi government funds and the Export-Import Bank of the United States.
National Chevron is the third project with Saudi Industrial for Chevron Phillips Chemical, a venture between Chevron Corp. and ConocoPhillips based in Texas. The companies opened their first al-Jubail plant in 1999 to produce chemicals including benzene, and in 2001 agreed to build a second plant due to open in Q4-2008. National Chevron will produce chemicals including ethylene, propylene and polyethylene. The company has refused to comment on the project's financing or construction schedule.