Advanced and Vinmar form JV for projects in the US

Advanced Petrochemical (Advanced; Al Jubail) has signed a memorandum of understanding (MOU) with Vinmar Projects to form a new company, which will explore and evaluate petrochemical-based growth opportunities in the United States. The MOU is valid for three years.

 

Advanced, a producer of propylene and polypropylene, has been seeking to expand its operations and, due to lack of feedstock availability in Saudi Arabia, has been pursuing opportunities abroad. Last year, it signed an MOU with Turkish trader Bayegan (Istanbul) to duplicate a project it operates in Saudi Arabia at Adana, Turkey, at a cost of $1 billion. The MOU expired at the end of December without agreement.

 

Advanced has now decided to focus on the United States, where it aims to take advantage of cheap shale gas.

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