Aramco Dow to approach export credit agencies in third quarter

06 June 2011

Export credit agency to play large role in funding $15bn petrochemcials scheme

Saudi Aramco and the US’ Dow Chemical Company will approach export credit agencies (ECAs) for financing the pair’s $15bn Jubail petrochemicals project in the third quarter, later than the sponsors had originally hoped.

“Late July was an aspirational date, it now seems the third quarter is more likely to start approaching ECAs,”says a source close to the deal.

The project will involve development of hydrogen, carbon monoxide and ammonia plants; polymeric methylene diphenyl diisocyanate (PMD) and toluene diisocyanate (TDI) production facilities as part of a move to produce more speciality chemicals in Saudi Arabia.

MEED reported that the two firms were considering moving the project from Ras Tanura in March 2010. It was later confirmed by Aramco and Dow in August 2010 (MEED 04:08:10).

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