SABIC, Shell abandon plans for expansion of Jubail petrochem venture on poor results of feasibility test

27-Oct-14

Saudi Basic Industries Corp. (SABIC) and Royal Dutch Shell (Shell), partners in the SADAF, have abandoned expansion plans. SADAF, announced in 2012, was a proposed expansion of the Jubail petrochemical complex on the Gulf coast of Saudi Arabia.The expansion was planned for the additions of polyols, propylene oxide (PO) and styrene monomer processing capacity. According to a Shell spokesman, SABIC and Shell have agreed not to pursue this investment further. Both parties are open to future discussions to explore other business opportunities. A SABIC spokesman commented that the feasibility study results were not encouraging to continue the SADAF project further.