Saudi Basic Industries Corporation (SABIC) announced that it has renewed its partnership agreement with the Japan Saudi Arabia Methanol Company (JSMC) for another 20 years.

The agreement concerns the Saudi Methanol Company (Ar-Razi), a joint venture (JV) between the two companies, in which SABIC controls a 75% stake, and JSMC owns 25%.

All the needed regulatory approvals have been completed in relation to the extension of the agreement, SABIC revealed in a statement to the Saudi Stock Exchange (Tadawul).

JSMC will pay SABIC $1.35 billion in three installments, ending in 2021.