Page 56 - Plastics News May 2017

BUSINESS NEWS

Sabic and Sinopec to explore new ONGC Petro Additions Ltd and Saudi
petrochemical projects in JV Aramco likely to discuss collaboration

abic and Sinopec have signed a strategic ormal talks are likely to happen
Sagreement to study opportunities for joint Fbetween ONGC Petro Additions Ltd
projects in Saudi Arabia and China. Under the and Saudi Aramco for collaboration.
agreement, signed on March 16, 2017, the largest ONGC Petro additions Ltd (OPaL) is
Saudi and Chinese petrochemical companies are seeking to sell 50% stake in its US$4.6 bln facility, likely to
planning - for the first time to study a joint venture Saudi Aramco, as per sources in livemint.com, after talks
with a unit of Kuwait Petroleum Corp. about investing in the
with Chinese investment in Saudi Arabia. “This is an project stalled last year.
opportunity for both parties to build on their historic
cooperation. The Oil & Natural Gas Corp. (ONGC), which owns the biggest stake
Chinese market in OPaL, entered into a preliminary cooperation agreement in
has always been January 2014 with Petrochemical Industries Co., a subsidiary
a key pillar of our of state-owned Kuwait Petroleum. Talks between OPaL and PIC
about the Kuwaiti company investing in the Indian project stalled
sales over the last last year, according to the reports. OPaL hosted a team from
30 years. Today, Saudi Aramco at its plant in Gujarat last month, they said.Saudi
we are entering Aramco, which is the biggest supplier of crude oil to India, has
a turning point in shown interest in a proposed 60 million tonnes-a-year refinery
our strategic relationship and building on previous and petrochemicals project being planned by Indian state
successes, such as studying the establishment of refiners on the nation’s west coast, oil minister Dharmendra
a coal-to-chemicals petrochemicalcomplex with Pradhan said at meeting.
China’s Shenhua Ningxia Coal Industry Group. We
hope these successes continue through strategic Petronas and Yayasan Hartanah
projects that contribute to the Saudi and Chinese
leaders’ plans and meet the aspiration of their Bumiputera Sarawak sign MoU

peoples,” said Yousef Al-Benyan, vice chairman and etronas and Yayasan Hartanah Bumiputera Sarawak
CEO, Sabic P(YHBS) have signed an agreement and a memorandum
of understanding (MoU) as part of commitment to support
The agreement also seeks to explore opportunities
for further investments at the existing joint venture the development and growth
of the petrochemical industry
SinopecSabic Tianjin Petrochemical Company (SSTPC) in Sarawak. According to thr
that will contribute to industrial development in reports the move was in line
the two countries, allowing them to manufacture with the state government’s
more high-quality products and open the way for aspiration to advance the state
expanding integrated cooperation that supports long- as a petrochemical hub and to add value to the state’s natural
term development plans. The agreement studies gas resources. The first agreement relates to the key terms
joint venture petrochemical projects in China and for the supply of 140 mmscfd of natural gas to YHBS’ proposed
Saudi Arabia, which target downstream key markets, methanol plant in Tanjung Kidurong, Bintulu that will produce
such as automotive, electronics, lighting, and methanol and methanol derivatives. The key terms include
building and construction, packaging, and medical the price, volume and period of gas supply by Petronas to
equipment. The agreement covers strategic projects YHBS. The agreement is a prelude to the gas sales agreement
that allow Sabic to continue its historic participation (GSA) to be signed by Petronas and YHBS at a later date. At
in China’s growth and serve global growth as a whole. the same event, Petronas chemicals Marketing (Labuan) Ltd
(PCML) and YHBS also signed an MoU on a sale and purchase
The agreement is a boost to Sabic's efforts to achieve agreement for methanol produced by YHBS’ proposed Tanjung
its 2025 strategy in line with Saudi 2030 goals.
Kidurong methanol plant.

Plastics News | May 2017 56