RDIF and SABIC to invest in ESN Group’s methanol plant development in Russia’s Far East

RDIF and SABIC to invest in ESN Group’s methanol plant development in Russia’s Far East
Published: 14 October 2019 - 9 a.m.
By: Martin Menachery
The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, Saudi Basic Industries Corporation (SABIC) and ESN Group have agreed to invest in a project to design, build and operate a methanol plant in the Amur Region.

The corresponding announcement was made today in presence of Russian President Vladimir Putin and King Salman bin Abdulaziz Al Saud of Saudi Arabia.

The plant’s annual installed capacity is expected to be up to 2 mn tonnes of methanol with 1 mn tonnes at initial stage. In July 2019, the methanol plant project became a resident of advanced special economic zone (ASEZ) "Free". As part of ASEZ mechanisms the government provides investors with incentive support measures.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said: “RDIF is consistently building up investment partnerships with companies from the Kingdom of Saudi Arabia. Today we have reached an agreement with SABIC and ESN Group and will build a modern methanol plant in the Far East. This plant will boost local tax revenues and help create additional jobs.

Grigory Berezkin, Chairman of the Board of Directors of the ESN Group, said: “Partnership with RDIF and SABIC propels this project to an entirely new level. SABIC is the global leader in petrochemical industry. RDIF is a sovereign fund with unique portfolio and unparalleled experience in execution of major investment projects in various industries. Due to sizable Gazprom investments in development of gas infrastructure and simultaneous introduction of systematic stimulating measures for attraction of investments by the Russian Government, there is a tremendous opportunity for implementation of world-class investment projects in the Russian Far East.”

Yousef Al-Benyan, SABIC vice chairman and CEO, commented: “This is an important milestone in our global growth strategy. Russia is important to our global expansion plans, which have been formulated around competitive feedstock and our capacity to innovate and plan strategically. We plan to maintain our strategic partnership with the Russian market by continuing to focus on meeting customer needs, increasing our key customer base, and growing our commercial operation, in addition to enhancing our presence in the Russian market and maintain our leading position as a key methanol supplier.”

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