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SABIC recently announced that it has teamed up with South Louisiana Methanol Corporation to evaluate the construction of a 2 million-ton methanol plant in Louisiana. The two sides have signed a six-month "preliminary agreement" to study the project.
SABIC said in a statement that the two companies would study the economic, technical and financial aspects of the project and decide whether to move forward with the project
China's
once all the necessary permits were
. The initial agreement could be extended for more than six months after its end.
SABIC said the agreement was part of its strategy to focus on diversifying its business geography to gain access to global markets and competitive raw materials. SABIC currently holds a minority stake in Nova Chemical's 88.45 million-ton/year fracking plant in Gasma, Louisiana, and is a partner in ExxonMobil's petrochemical complex near Corpus Christi, Texas, which has a ethylene cracking capacity of 1.8 million tons/year and also produces derivatives such as polyethylene and glycol.