An agreement was signed recently with Texas-based Enterprise Products Partners to purchase shale gas.
Saudi Basic Industries acting CEO Yousef al Benyan was reported by Bloomberg as saying that the feedstock will be used by the company in the US or would be exported to other countries including the UK.
In the UK, shale gas will be used as feedstock to produce olefins and their derivatives at competitive costs.
"The main areas in the US we are looking to invest in are the northeast and the south as they fit our overall expectations including government support, labor laws and unions," al-Benyan added.
In April, Sabic announced its plan to boost operations in the US and China due to growth constraints in Saudi Arabia amid gas shortage.
The company made a net profit of $1.64bn in the quarter ended June 30, a 4.5% fall from the previous year.
Reuters cited al-Benyan as saying: "We are looking for business opportunities in North America related to shale gas, and also some options in China related to coal-to-chemicals.
"Hopefully by the end of the year we will have an announcement."
The petrochemicals major does not have plans to involve directly in shale production in Saudi Arabia, but the potential shale gas discovery would provide the company with indirect investments opportunities, Benyan added.
Image: Sabic plans to use shale gas as feedstock to produce olefins and their derivatives. Photo: courtesy of Vichaya Kiatying-Angsulee/ FreeDigitalPhotos.net.
