Saudi Basic Industries Corp (SABIC) expects the company’s greenfield petrochemical complex in Ningxia Hui Region of China to cost $3-4b and be finalized by 2020, Reuters reported.
In May, SABIC signed the project development agreement with China’s Shenhua Ningxia Coal Industry Group. The project will help the Saudi company to geographically diversify their operations and feedstock. The agreement includes certain commitments from the Ningxia Government to provide support and incentives to the project, while also providing a framework for coordination and cooperation between the companies and the government in connection with the project approval process, according to SABIC website.
The cooperation came as a contribution to the Chinese government’s Belt & Road Initiative, expanding the economic ties and bilateral trade between Saudi Arabia and the People’s Republic of China.