Saudi Arabia's Sahara International Petrochemical Company (Sipchem) announced on Sunday that it has extended the closing date for its ongoing negotiations with Linde for a partnership agreement for the supply of industrial gases to refining and chemical industries in the Kingdom to the end of September 2020.
The initial agreement was due for expiry at the end of March 2020, Sipchem said in a bourse statement.
In December 2019, the Saudi company had announced that it had signed a MoU with Linde to discuss connecting their existing hydrogen and syngas plants in Jubail Industrial City by a pipeline and co-develop new carbon monoxide, hydrogen, syngas and associated gases production facilities.
"...both parties are in the process to finalise such negotiations for the partnership and expect to achieve definitive agreements; therefore, the parties have agreed to extend the initial terms until the end of Q3 2020," the statement said.
The challenges in carrying out "visits to the manufacturing sites as part of confirmatory due diligence by both parties due to the current situation," was the reason for the extending the initial terms, according to the statement.
In December, the Sipchem CEO had said the partnership with Linde has the potential "to blend stable returns with long-term supply commitments, offering us the opportunity to manage the typical cyclicality of the petrochemical industry."
(Writing by Anoop Menon; Editing by Mily Chakrabarty)
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