SABIC to exploit US shale boom with new cracker

10 April 2013 12:02  [Source: ICIS news]

LONDON (ICIS)--SABIC is planning to capitalise on cheap US feedstock prices in light of the US shale gas boom by developing at least one new cracker in the country, a spokesperson for the Saudi-based company said on Wednesday.

The company is in talks with partners with a view to investing in one or more projects utilising ethane derived from shale gas as a feedstock, a spokesperson confirmed. SABIC declined to disclose the details of what any crackers would be likely to produce.

The company has been weighing the potential for a new US cracker for over a year, with CEO Mohammed Al-Mady telling ICIS in December 2011 that the company was considering investing in a US cracker either alone or with a partner.

The move reflects the international attention US shale gas is getting, even from market players based in oil-rich regions such as Saudi Arabia, where feedstock costs are relatively low compared to regions such as Asia and Europe.

SABIC also announced earlier this week that it has signed a research agreement with MIT to research and develop new processes for production from unconventional feedstocks such as shale gas.


By: Tom Brown
+44 208 652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index