JUBAIL, Saudi Arabia—Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following feasibility studies.
The two partners in the joint project, known as SADAF and located in Jubail, on the Gulf coast of Saudi Arabia, first announced plans to explore an expansion of their petrochemical plant in 2012.
“Shell and Sabic have agreed not to pursue this investment further but have agreed to continue to have constructive discussions to explore other opportunities for expansion,” a Shell spokesman said in a statement Oct. 23.
“The results of the [feasibility] studies were not encouraging to carry out the project,” according to a Sabic statement.
The expansion was due to add polyols, propylene oxide and styrene monomer.