18 April 2007 16:25 [Source: ICIS news]
TORONTO (ICIS news)--Dow Chemical and Libya’s National Oil Corporation (NOC) have agreed to jointly operate and expand Libya’s Ras Lanuf petrochemicals complex, Dow said on Wednesday.?xml:namespace>
Dow chief executive Andrew Liveris said the deal was in line with his company’s strategy to grow its position in basic plastics and chemicals through joint ventures.
They would also, in later stages, build additional gas-based chemical plants, it added.
The companies have signed a heads of agreement (similar to a memorandum of understanding) for the joint venture and expect to sign a definitive agreement by the third quarter, Dow spokesman Chris Huntley told ICIS news.
The joint venture will be between NOC, Dow and unnamed private investors.
Dow did not disclose how much it expected to invest in ?xml:namespace>
Part of the ethylene was used to make about 160,000 tonnes/year of polyethylene, it said.
Dow will initially have less than 50% of the JV, but have an option to increase its stake to 50%, said Huntley.
“Over the long-term, this will likely be a multi-billion dollar project”
Additional reporting by Joe Chang
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