TotalEnergies, Sabic considering selling US chemical plant: sources

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French oil major TotalEnergies SE and Saudi Basic Industries Corp. are considering selling a jumbo U.S. plant that make chemical ingredients used for everything from plastic packaging to disposable cups and insulation, people familiar with the matter said.

Total and Sabic are working with an adviser to prepare the sale of the styrene and polystyrene production lines in Carville, Louisiana, which together could fetch at least US$1 billion, said the people, who asked not to be named discussing private information. Work is at an early stage, and the companies may eventually decide to keep the plant, the person said.

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A representative of TotalEnergies declined to comment. Sabic, Saudi Arabia’s biggest chemical maker, didn’t respond to a request for comment.

The French energy giant and the Saudi group jointly own the styrene production plant in Carville, which has a capacity of 1.2 million tons a year, according to TotalEnergies’ annual report. Total fully owns the polystyrene unit. Together, they are the world’s largest styrene and polystyrene facility, according to TotalEnergies’ website.

The French company has invested to upgrade production sites for other chemical products in the U.S. in recent years, while it’s building an US$11 billion petrochemical project in Saudi Arabia with Aramco. It’s also transforming some refineries in France into biofuel plants; it recently sold some French chemical assets to Ineos Group.

—With assistance from Fahad Abuljadayel.

Bloomberg.com

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