Sabic, citing costs, stops cracker project

June 12, 2006
Saudi Basic Industries Corp. Europe has halted a cracker project in the Netherlands, citing "too high" investment costs and financial risks.

By OGJ editors
HOUSTON, June 12 -- Saudi Basic Industries Corp. Europe has halted a cracker project in the Netherlands, citing "too high" investment costs and financial risks.

Sabic was in the engineering stage of a large expansion at its ethylene plant in Geleen (OGJ, Apr. 24, 2006, p. 20).

"The main cause for the high investment costs is the current overstrained market situation in the global contracting and construction market due to the many investments projects in the oil, gas, and energy market worldwide," said Sabic Europe Chief Executive Frans Noteborn.