SABIC, Shenhua JV to cost $4 bln, says Al Benyan

The potential joint venture (JV) between Saudi Basic Industries Corp.’s (SABIC) and China’s Shenhua Ningxia Coal Industry Group Co. Ltd. (SNCG) to build a coal-to-chemicals complex is expected to cost between $3 billion to $4 billion, said SABIC’s chief executive Yousef Al-Benyan.

The exact value of the project, however, is difficult to determine as it is still in its preparation stage, Al-Benyan said in an interview with Al Arabiya TV.

The JV would be equally owned by SABIC and SNCG and is scheduled to be completed by year 2020, he added.

Al-Benyan added that SABIC has long-term investments in the Chinese market, which is considered a very important and strategic market for the company. SABIC’s sales to the Chinese market reached $7 billion, representing about 31 percent of the company’s total sales.