The company will form 50:50 joint venture (JV) to study the viability of the petrochemicals plant with a planned capacity of 330,000t per year.
Mitsui and Idemitsu have also entered into an initial agreement with The Dow Chemical Company for the procurement of feedstocks to produce alpha olefins.
Under the deal, a part of the production will be used by Dow Chemical.
Mitsui and Idemitsu are planning the project to take advantage of shale gas and oil cost in the US.
The JV will also implement the project applying the integrated strengths of both companies, including Idemitsu’s technical expertise in the field of alpha olefins and Mitsui’s partnerships with overseas companies capable of supplying cost-effective feedstocks.
The final decision on the investment is expected to be made in 2014 and the production is anticipated to begin in 2016.
