May 14, 2007 (AFX International Focus) --
NEW YORK (AP) - Dow Chemical (NYSE

OW) Co. formed a partnership with the world's biggest energy company over the weekend to build a chemicals and plastics plant in Saudi Arabia in a project that could cost as much as $22 billion.
The Midland, Mich.-based chemical maker signed a contract with Saudi Arabian Oil Co. to build and operate the petrochemicals facility in Ras Tanura in Saudi Arabia's Eastern Province, the Wall Street Journal said Monday.
Dow and Saudi Arabian Oil, also known as Saudi Aramco, plan to build the petrochemical facility next to Saudi Aramco's Ras Tanura refinery complex and the Ju'aymah natural gas processing plant in Ras Tanura. Saudi Aramco's petroleum will be used as a raw material to make petrochemicals like ethylene, propylene aromatic and chlorine derivatives.
Saudi Arabian Oil Chief Executive Abdullah Jumah said the companies plan to sell a 30 percent stake in the partnership to the public, with shares to be traded on the Saudi market, the Journal reported.
The companies plan to begin operating the factory in 2012, the Journal said.