Saudi＇s SABIC, Shell Shelve Petchem Plant Expansion in Jubail

KHOBAR, Saudi Arabia, Oct 23 (Reuters) - Saudi Basic Industries Corp and Royal Dutch Shell have shelved plans to expand an existing petrochemical joint venture in Saudi Arabia as the results of feasibility studies were not encouraging.

"Shell and SABIC have agreed not to pursue this investment further but have agreed to continue to have constructive discussions to explore other opportunities for expansion," a Shell spokesman said in a statement on Thursday.

SABIC, one of the world's largest petrochemical groups, said the decision would not have any impact on its earnings, according to a statement on the Saudi bourse website.

The expansion was due to add polyols, propylene oxide (PO) and styrene monomer. SABIC did not say by how much the plant was due to be expanded nor gave an estimated cost.

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