Sabic, RDIF, ESN to build, operate methanol plant in Russia's Amur
Agreement signed on 14 October 2019 on the sidelines of Russian President Vladimir Putin’s visit to Saudi Arabia
Saudi Arabia’s Tadawul-listed Saudi Basic Industries Corporation (Sabic) has inked an initial non-binding memorandum of understanding (MoU) with Russian Direct Investment Fund (RDIF) — the country’s sovereign wealth fund — and ESN Group on 14 October 2019, “to evaluate building, and operating” a methanol plant in Russia’s Amur, with the agreement being signed on the sidelines of Russian President Vladimir Putin’s visit to Saudi Arabia.
In a stock market filing Sabic said that the agreement was “a preliminary step towards exploring the cooperation between the three parties” for the establishment of the plant that will produce 1.8 million tonnes of methanol each year.
The company added: “The MoU is part of Sabic's strategy to diversify its operations, seek new investment opportunities, and strengthen its position in the global market.”
Sabic also said that the MoU will last for a period of 12 months from the date of signing, and can be extended.
In a statement on its website, RDIF quoted its chief executive officer, Kirill Dmitriev, who said: “Today we have reached an agreement with Sabic, and ESN Group, and will build a modern methanol plant in the Far East.
“This plant will boost local tax revenues and help create additional jobs,” Dmitriev added.
Meanwhile, vice chairman and CEO of Sabic, Yousef Al-Benyan said that the plant will help the company enhance its position as in the Russian market, and also as “a key methanol supplier”.