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Saudi Basic Industries Corp. (SABIC) and China’s Shenhua Ningxia Coal Industry Group will study construction of a coal-to-chemicals plant in China’s Ningxia Hui coal-producing region. The companies plan to assess the project for three years and submit an application to the government. China has 5 million metric tons per year of coal-to-olefins capacity, according to the consulting firm IHS Chemical; another 15 million metric tons are being planned. SABIC says it hopes to diversify feedstocks away from Saudi natural gas and become closer to Chinese customers.
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