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.