Saudi Arabia Basic Industries Corp. (Sabic) and China Petroleum and Chemical Corporation (Sinopec) have signed a strategic agreement on to study opportunities for joint projects in Saudi Arabia and China.
Under the agreement, signed March 16, the two petrochemical companies will investigate the possibility of a JV business inside Saudi Arabia.
The agreement will also study further investments at the existing joint venture Sinopec Sabic Tianjin Petrochemical Co (SSTPC).
“We are entering a turning point in our strategic relationship and building on previous successes, such as studying the establishment of a coal-to-chemicals petrochemical complex with China's Shenhua Ningxia Coal Industry Group,” said Yousef Al-Benyan, Sabic's vice chairman and CEO.
The agreement also studies joint venture petrochemical projects in China and Saudi Arabia, which target downstream key markets, including automotive, electronics, lighting, and building.