Sabic Set to Invest in US Shale, According to Executive

September 9, 2015

Saudi Basic Industries Corporation (Sabic) is planning to expand its investment in US shale gas projects through a series of joint ventures, according to its acting chief executive.

Yousef al Benyan announced that the company has signed an agreement with Enterprise Products Partners to extract shale gas and use the resources in other US projects or export to Europe.

“The main areas in the U.S. we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labour laws and unions,” al-Benyan said.

“At this point we are not looking to acquire any U.S. companies,” he added, confirming that the investment will be restricted to participation in joint ventures rather than acquisitions.

In April the company said it was planning to expand its operations in China and the US as shale gas resources are not currently being developed in Saudi Arabia on a significant scale.

Shale gas in Saudi Arabia will “open up some opportunities for indirect investments for Sabic,” al-Benyan said, but added that Sabic will not be directly involved in the production process in the country.

Copyright 2015. Shale Energy Insider