UPDATE 1-China approves SABIC-Sinopec JV, cost rises 20 pct

* SABIC says China's top planning body approves Sinopec JV

* SABIC puts cost 20 pct higher, output target 20 pct lower

* JV gives foothold at world's largest petrochemicals market

RIYADH, July 11 (Reuters) - China has approved Saudi Basic Industries Corp 2010.SE (SABIC) and Sinopec (600028.SS) joint venture plant, the Saudi petrochemicals firm said on Saturday, announcing a higher cost estimate and a lower output target.

State-controlled SABIC estimated the cost of the project at $3 billion, 20 percent higher than the cost announced in June when the two firms unveiled the expanded petrochemicals project in the Chinese region of Tianjin.

The initial plan which was released in January estimated the plant's cost at $1.7 billion.

The plant would have an annual production capacity of 3.2 million tonnes, 20 percent lower than output target announced in June, SABIC said in a statement on the Saudi bourse website.

Construction will be completed in September, SABIC said without giving a launch date.

Products will include ethylene, polyethylene, polypropylene, glycol-ethylene and butanediol, SABIC said.

The deal for the project in north China's Tianjin was signed during a 2008 visit by Chinese Vice President Xi Jinping.

SABIC said China's National Development and Reform Commission, the country's top planning body, had approved its partnership with Sinopec.

"China is the world's biggest petrochemical market ... SABIC's participation in the Tianjin industrial complex will strengthen its presence in Asia and guarantee its proximity to its local customers," SABIC said.

Sales to Asia accounted for 24 percent of SABIC's sales in 2008 which stood at 151 billion riyals ($40.27 billion). (Reporting by Souhail Karam; Editing by Jeremy Laurence)