Riyadh – Mubasher: Saudi Basic Industries Corporation (SABIC) on Monday announced signing an agreement to renew its partnership with the Japan Saudi Arabia Methanol Company (JSMC) in the Saudi Methanol Company (Arrazi) for another 20 years, Saudi Press Agency (SPA) reported.

Under the deal, SABIC’s stake will be raised to 75% and JSMC’s shareholding will amount to 25%.

The Japanese firm will pay as much as SAR 5 billion to SABIC for extending the partnership.

Such amount will be used in part or whole by SABIC to finance raising the operating efficiency of Arrazi’s existing methanol plants or establishing new ones.

Under the agreement, SABIC will become a co-owner with JSMC in a new methanol production technology which can be commercialised inside or outside Saudi Arabia.

On 24 June, SABIC revealed receiving all regulatory approvals in relation to the extension of its joint venture (JV) with JSMC.