Riyadh – Mubasher: Saudi Basic Industries Corp. (SABIC) on Tuesday announced signing a six-month initial partnership agreement with the US-based South Louisiana Methanol LP to mull over the establishment of a methanol plant joint venture (JV) over the coming period.
If approved, the facility will produce over 1.8 million metric tonnes of methanol per annum, according to a statement to the Saudi Stock Exchange (Tadawul).
“In light of the results of the study referred to, and after obtaining the required approvals and licences, the parties will reach to a final decision on whether to invest or not,” the statement added.
This agreement is part of SABIC’s strategy to implement major expansion regionally and overseas.
South Louisiana Methanol LP is a subsidiary of New Zealand-based The Todd Corporation.
SABIC last reported a net profit of SAR 18.3 billion after Zakat and tax in the first nine months of 2018, up 24.23% year-on-year from SAR 14.73 billion.
During the third quarter of 2018, SABIC logged a net profit of SAR 6.1 billion after zakat and tax, up 5.35% year-on-year from SAR 5.79 billion.
