Saudi Basic Industries Corp. (SABIC) is planning to build at least one new cracker in the US, news reports said on Thursday.
The plans for a new ethylene plant are based on an abundance of cheap ethane feedstock derived from the ongoing US shale boom.
Mohammed Al-Mady, CEO of SABIC, said the company is in talks with partners to invest in one or perhaps two projects.
"We are talking about a cracker, building a new cracker," Al-Mady said earlier this week, according to a Reuters report.
"We are looking at least at one or two investments," he added.
Al-Mady declined to say how big the investments would be or how they would be funded, but ruled out venture capital as a source of financing, according to the report.
Numerous companies are expected to begin work on new US ethylene projects during the next five years.