DUBAI (Reuters) – State oil giant Saudi Aramco and U.S. Dow Chemical Co. are to sign an agreement to build a large petrochemical plant with an investment value of at least $20 billion, industry sources said on Wednesday.
“Aramco and Dow are about to sign a major deal,” said an industry source.
Costs for the plant at Ras Tanura have risen from an earlier estimate of over $15 billion, industry sources said.
“We are hearing costs have escalated, they’ve risen above $20 billion,” one source said.
Aramco said in a statement on Wednesday that it would make a major business announcement on Saturday with a business partner but did not give further details.
Aramco and Dow officials declined to comment on Wednesday.