SABIC Renews Partnership with Japan’s Methanol Company

Saudi Arabia’s SABIC said it signed an agreement with the Japan Saudi Arabia Methanol Company (JSMC), renewing its partnership in the Saudi Methanol Company (Ar-Razi) for another 20 years.

Under the agreement, SABIC will raise its stake in Ar-Razi to 75 per cent by purchasing half of JSMC’s share, which represents 25 per cent of all Ar-Razi shares, reducing JSMC’s stake in Ar-Razi to 25 percent, the company said in a statement. SABIC will pay US$150 million for the shares.

Under the previous arrangement, SABIC had the right to buy the 50 percent share held by JSMC in Ar-Razi on the agreement’s expiry on Nov. 29.

SABIC said it will use some or all of the above proceeds to finance the refurbishment of or replacement of Arrazi’s existing methanol plants.