Mohamed Al Mady, chief executive officer of Saudi Basic Industries Corp. (SABIC), said his company plans to invest in the U.S. shale gas sector.
On the sidelines of the annual forum of the Gulf Petrochemicals & Chemicals Association, Al Mady told Al-Arabiya TV that this plan aims to diversify sources and types of feedstock used by the company.
He asserted that the decline in oil prices will give a competitive advantage to SABIC’s competitors, giving those competitors a chance to rely on Naphtha.
Naphtha prices will decline in tangent with petroleum prices, Al Mady said.
He noted that if the declining trend of petroleum prices continued, it will have two impacts: i) the prices of raw materials will decrease; and ii) the prices of the final petrochemical product will go down; affecting SABIC’s profitability.