Summary
Duke Energy Corporation, through its indirect subsidiary Texas Eastern Arabian, Ltd., announced a significant expansion of its joint venture, the National Methanol Company (Ibn Sina), in Saudi Arabia. This venture will involve the construction of a new 50,000-ton polyacetal production facility, with engineering and construction slated to commence in 2011 and a projected startup in 2013. This expansion is part of a 20-year extension of the Ibn Sina joint venture, which will now run through 2032. While Duke Energy's indirect subsidiary, Texas Eastern, will see its share of future distributions from Ibn Sina decrease from 25% to 17.5% upon the facility's successful startup, it will maintain its 25% board representation and voting rights. The capital investment for Duke Energy's portion of this project will be self-funded from its existing share of Ibn Sina distributions, indicating no immediate external funding requirement for this specific expansion.
Key Highlights
- 1Duke Energy, via Texas Eastern Arabian, Ltd., is expanding its joint venture, National Methanol Company (Ibn Sina), in Saudi Arabia.
- 2A new 50,000-ton polyacetal production facility will be constructed.
- 3Engineering and construction are expected to begin in 2011, with facility startup anticipated in 2013.
- 4The Ibn Sina joint venture has been extended for an additional 20 years, through 2032.
- 5Texas Eastern's share of future Ibn Sina distributions will decrease to 17.5% post-startup.
- 6Texas Eastern will retain its 25% board representation and voting rights in Ibn Sina.
- 7Duke Energy's share of the capital investment will be self-funded from Texas Eastern's distributions.