Riyadh headquartered diversified chemicals company, SABIC, has signed an agreement with Japan Saudi Arabia Methanol Company (JSMC) to extend the partnership with the Saudi Methanol Company (Ar-Razi) for another 20 years.
Ar-Razi, established on November 24, 1979, is a 50/50 joint venture (jv) between SABIC and JSMC with the aim of developing, establishing, owning and operating a methanol complex.
Under the new agreement approved by regulatory bodies, SABIC will raise its stake in Ar-Razi to 75%, reducing JSMC’s shares in Ar-Razi to 25%. The latter is also paying more than US$1.3bn to SABIC for renewing the jv, which SABIC will use, in part or whole, to finance the refurbishment of Ar-Razi’s existing methanol plants or set up new ones.
By concluding the agreement, SABIC will become an equal co-owner with JSMC in a new methanol production technology, which will be freely commercialised inside or outside of Saudi Arabia.