Sabic and Shenhua Group to set up coal-to-chemicals complex in China

Saudi Arabian petrochemical major Sabic has signed an agreement to form a joint venture with China’s Shenhua Ningxia Coal Industry Group Co Ltd. (SNCG) for setting up a greenfield coal-to-chemicals complex in the Ningxia Hui Autonomous Region. The facility will focus on highly-differentiated applications and segments through polymers derivatives.

Highlighting Sabic’s intent on developing collaboration with production sectors in China, the company’s  vice chairman and CEO, Yousef Al-Benyan, said, “More broadly, we look to further Sabic’s investment in the Chinese economy and our strategic engagement with key participants in the Chinese petrochemicals industry.”

The cooperation between the parties with respect to the coal-to-chemicals project contributes to the Chinese government’s Belt & Road Initiative, expanding the economic ties and bilateral trade between Saudi Arabia and China.

The project would benefit from Sabic’s participation through the utilisation of Sabic’s advanced technologies. The project would also have access to Sabic’s global technology & innovation centres for product development, and technical support and application development programs. 

The project would also benefit from the participation of SNCG, which is an affiliate of Shenhua Group, one of the largest coal producers and suppliers in China, as well as a global coal-based, integrated energy and chemicals company.