Saudi Basic Industries Corporation (SABIC) signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC) to increase its stakes in the Saudi Methanol Company (Ar-Razi) from 50% to 75%, the company said in a statement on December 5.

Under the agreement, SABIC will purchase half of JSMC’s 50% stake in Ar-Razi, and extend their partnership with the company for another 20 years. According to a previous agreement, SABIC had the right to acquire the 50% held by JSMC before the agreement’s expiry date on November 29.

JSMC could sell its remaining 25% stake to SABIC for $149.78 million before the end of March 2019, handing full ownership of Ar-Razi to SABIC.

According to the agreement, SABIC will become equal co-owner with JSMC in a new, commercial methanol production technology.

Ar-Razi was established in November 1979 as a joint venture between SABIC and JSMC to establish, own and operate a methanol complex.