SABIC plans new US ethane cracker, possibly more

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.

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