SABIC, Shenhua subsidiary sign a Project Development Agreement


A Project Development Agreement (PDA) has been signed between Shenhua Ningxia Coal Industry Group Co Ltd (SNCG), a subsidiary of Shenhua Group Corporation Limited, and Saudi Arabia-headquartered diversified chemicals company, SABIC. The PDA, which has taken effect from May 30, related to the two parties’ potential joint development of a greenfield petrochemical complex to be located in the Ningxia Hui Region of China.

The parties would proceed with further actions to implement the project in the event of a positive final investment decision and subject to obtaining all necessary governmental approvals. The joint venture would benefit from its location in Ningxia and utilise locally available coal feedstocks to be supplied by SNCG.

The PDA provides a basis for the parties to conduct a joint feasibility study on the project, within three years starting from the date when the agreement became effective, and, subject to a positive outcome, to prepare and submit the materials necessary to obtain Project Application Report approval (PAR Approval) from China’s National Development and Reform Commission (NDRC).

This project is part of SABIC’s ongoing strategy to geographically diversify its operations and to seek future investment opportunities that opens doors to new markets.


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