Saudi Aramco has axed a plan to create a $20.1 billion refining and petrochemicals joint venture project with Malaysian national oil company Petronas.
The proposed project at a fishing town in the Malaysian state of Johor, led by Petronas, was scrapped because a feasibility study found that it wouldn’t generate sufficient returns, according to a report in the Wall Street Journal.
The JV was would have seen the construction of a refinery with capacity to process 300,000 barrels of oil a day. The partnership would also construct an adjacent petrochemical complex, which would have yielded a combined annual chemical output of 7.7 million metric tons. Construction costs were estimated at $12 billion, with related facilities to cost $8 billion.
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