Saudi Basic Industries Corporation and China Petroleum & Chemical Corporation have started negotiations with Trinidad and Tobago to build USD 5.3 billion methanol complex there.

SABIC and its Chinese partner obtained the approval of Trinidad and Tobago after bidding against other international companies. This approval marks the launch of negotiations to build the complex and is not binding to either side until final agreement is reached.

It did not set a timeframe for the final agreement nor the capacity of the plant which will produce methanol and then convert it to olefins.

Sabic is 70% owned by the government of Saudi Arabia and makes chemicals, fertilizers, plastics and metals used in paint, rubber, textiles, cleaning and other consumer products.

The firm also has an agreement with Sinopec to build USD 1 billion plus polycarbonate plant in Tianjin where the two companies have already started operating a petrochemical JV in 2010.

(Sourced from Reuters)