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MOSCOW (MRC) -- Rabigh Refining and
Petrochemical Company (Petro Rabigh) has announced that it has secured
alternative sharia-compliant banking facilities from the Saudi Industrial
Development Fund (SIDF) worth SR3.6 billion (USD959 million), said Chemweek.
PetroRabigh
is a joint venture between state oil giant Saudi Aramco and Japan's Sumitomo
Chemical,
which engages in the development, construction, and operation of an
integrated refining and petrochemical complex.
The key Islamic
funding facility, which has been guaranteed by a promissory note, will be used
for refinancing existing debts with better terms and conditions and repayment
period, in addition to settling other loans, which will reflect positively on
the company and its shareholders, said Petro Rabigh in its filing to the Saudi
bourse Tadawul.
Under the 12-year facility, Petro Rabigh is granted
a grace period until May next year.
Petro Rabigh had in September
announced
three joint revolving loans and facility agreements valued at SR7.5 billion
with the key lenders being Saudi Aramco and Sumika Finance Company.
As
MRC reported
earlier, in December 2020, Sumitomo Chemical and Axens signed a license
agreement of ethanol-to-ethylene technology Atol for Sumitomo Chemical’s
waste-to-polyolefins project in Japan. In the project, to promote circular
economy, Axens’ Atol technology will transform ethanol produced from waste into
polymer-grade ethylene that will be polymerized in Sumitomo Chemical’s assets
into polyolefin, a key product in the petrochemical industry.
Ethylene
and propylene are feedstocks for producing polyethylene (PE) and polypropylene
(PP).
According to MRC's DataScope report, PE
imports to Russia decreased in January-November 2020 by 17% year on year and
reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the
greatest reduction in imports. At the same time, PP imports into Russia
increased by 21% year on year to about 202,000 tonnes in the first eleven months
of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase
in imports. |
