JEDDAH, 8 May — Saudi Industrial Development Fund (SIDF) has approved a SR400 million term loan facility to Saudi International Petrochemical Company (SIPC), a Saudi joint stock company.
“The loan is to assist in financing SIPC’s methanol project, which is planned to be built at the company’s petrochemical complex in the Jubail Industrial City,” according to a press release.
The project is described as one of SIPC’s projects with a nameplate capacity of 850,000 tons per year and total investments of more than SR1 billion.
The company has completed the basic engineering design in cooperation with Fluor Daniel and the technology licenser (Jacobs Engineering).
The company is completing the information memorandum in cooperation with Gulf International Bank, the financial advisor, for the commercial loan.
The company will consume part of the methanol production captively in its second phase projects and the balance will be exported to the international market. The project, along with the maleic anhydride (MAN) and butanediol (BDO) projects are considered the cornerstone of SIPC’s first phase projects.
SIPC, established in late 1999 with a fully paidup capital by Saudi and GCC investors of $133 million, plans to invest in the chemical and petrochemical industry to participate n the GDP and industrial development.
