PressTV... Saudi Arabia’s SABIC says it plans investment in US shale gas projects to source feedstock for its plants in the UK.
According to CEO Yousef al-Benyan, SABIC has signed an agreement with Houston-based Enterprise Products Partners L.P. to use shale gas as feedstock in the US or other countries.
The Saudi company has converted its cracker units in Britain to produce olefins and their derivatives.
“The main areas in the US we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labor laws and unions,” Bloomberg quoted al-Benyan as saying.
The official said SABIC was not planning yet to acquire any US companies.
The company is on an expansion drive outside Saudi Arabia because of the country’s poor gas reserves.
US shale reserves have turned to a business nightmare for Saudi Arabia which fears to lose its role as a major energy source.
The kingdom has ramped up oil output to bring down prices in order to make further investment in shale energy less viable. The move has resulted in a price crash, leading to many problems in oil-producing countries.
Poster Comment:
Drive price down through market manipulation then buy at bargain price.