Saudi's SABIC delays $30bn plant decision to 2016

SABIC will take a decision on whether or not to proceed with the oil-to-chemicals plant project by the second quarter of 2016, the firm's CEO confirmed

SABIC will approve or reject its oil-to-chemicals plant proposal next year. [Representational image]
SABIC will approve or reject its oil-to-chemicals plant proposal next year. [Representational image]

SABIC will take a decision in the second quarter of 2016 about whether or not to proceed with a $30bn oil-to-chemicals plant project, the firm's chief executive officer confirmed. 

Yousef Abdullah Al-Benyan, SABIC's acting vice chairman and CEO, told Reuters that the economics of the project were being assessed, and there was a 50/50 chance it would proceed.

"It's a very large project, and that's why it requires more deep analysis and assessment," he said.

"This is the type of project that really you need to assess because current crude prices influence the outcome of the project. 

"Probably second quarter of next year, we'll have more clarity on where this project stands."

If it does go ahead, then the crude to supply the plant planned for Yanbu on the west coast of Saudi Arabia would be procured at market rates, the report added. 

Last year, SABIC said it expected the proposed oil-to-chemicals plant to start operations by the end of 2020. 

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