China Approves SABIC-SINOPEC Joint Project

Riyadh, July 11, SPA -- Saudi Basic Industries Corporation (SABIC)
announced today that it has received an official approval from the
Chinese National Development and Reform Commission (NDRC) to
participate jointly with China Petroleum & Chemical Corporation
(SINOPEC) in the Tianjin petrochemical complex currently under
construction in Tianjin, China, said Othman Al-Humaidi, SABIC's
General Manager, Corporate Communications.

This approval follows a strategic cooperation agreement signed by
both parties on June 21, 2008 in Jeddah, Saudi Arabia.

The agreement stated that both parties would enter into a 50/50
joint venture at Tianjin and would study the feasibility of adding a
new product (polycarbonates) that uses raw materials produced at the
complex that are based on SABIC technology, he added.

--The complex is expected to be completed in September 2009 with
investments around $3 billion.

The complex’s overall production capacity is rated at approximately
3.2 million tons of various petrochemical products, including one
million tons of ethylene and other downstream products such as
Polyethylene, Ethylene Glycol, Polypropylene (PP), Butadiene, Phenol,
& Butene-1, he said.

China is the world’s largest petrochemical market based on high
growth rates realized by the Chinese economy.

Participation in the Tianjin complex will expand SABIC’s presence in
Asia and ensure SABIC’s closeness to its customers through local
availability of its products and services that strengthen SABIC’s
strategic goal of being the world’s preferred supplier of chemicals.

--SPA