Saudi Basic Industries Corp., the world’s second-biggest chemicals manufacturer, plans to expand investment in US shale gas projects through joint ventures, according to acting Chief Executive Officer Yousef al Benyan.
Sabic, as the company is known, signed an agreement with Houston, Texas-based Enterprise Products Partners L.P. to get shale gas. The company may use the feedstock in the US or export it to other countries such as the United Kingdom. Sabic has converted crackers at U.K. plants to use shale gas as feedstock to produce olefins and their derivatives more competitively.
“The main areas in the U.S. we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labor laws and unions,” al-Benyan said. “At this point we are not looking to acquire any U.S. companies.”
Sabic won’t be directly involved in Saudi Arabia’s shale production. The discovery of shale gas in the country will “open up some opportunities for indirect investments for Sabic,” al-Benyan said.