21-Jun-16 A major seaport east of Beijing and a coal-mining region in China's northwest have been picked by chemicals giant Saudi Basic Industries Corp. (SABIC) and its Chinese partners for petrochemical plant projects. Upon completion, the plant is expected to have an annual processing capacity of 15 mln tons of crude. Finished products will include ethylene, propylene and aromatics.
SABIC and Hong Kong Huatong Investment Holding Ltd. signed a US$ 6 bln deal in early June to build a refining and downstream chemicals complex near the Caofeidian section of the Port of Tangshan, state media reported. Saudi Aramco also has a stake in the project, a timetable for which was not announced. SABIC declined a Breakbulk request for further comment. Caofeidian is already home to an industrial complex, bulk cargo facilities, and shipping terminals for coal and steel. SABIC and the Chinese oil company Sinopec operate a petrochemical complex in nearby Tianjin.
Meanwhile, a SABIC press release announced May 30 that the company had signed a project development agreement for “potential joint development of a greenfield petrochemical complex” to be built within the next three years in the Ningxia Hui Autonomous Region in northwest China. SABIC signed the deal with Chinese energy giant Shenhua Group's subsidiary Shenhua Ningxia Coal Industry Group, which would supply the plant with “coal feedstocks,” the press release said. The project is subject to Chinese central government approval. “This (Ningxia) project reflects our enthusiasm to diversify our sources of feedstock, paving the way for further investment opportunities that depend on different and non-traditional sources of feedstock,” said SABIC CEO Yousef Al-Benyan. “This protects SABIC against the fluctuations and cyclical movements in feedstock price in the international markets, which helps ensure a profitable growth strategy.”
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