The project located is in Jubail Industrial City, the eastern region of the Kingdom of Saudi Arabia.
The plant will be constructed with an investment of $1.8 billion.
The project will have a design capacity of 843,000 metric tons per year of propylene and 800,000 metric tons per year of polypropylene
Advanced Global Investment Company, a subsidiary of Advanced and SK Gas Petrochemical (SKGP), signed a shareholder agreement to create a joint venture company called Advanced Polyolefins Company.
About 25percent of the project will be financed using equity from shareholders, while the left 75percent will be financed by the JV from borrowing from lenders.
AGIC will own an 85percent equity shares in the newly formed JV company, while the left 15percent will be owned by SKGP.
In addition, AGIC has signed a license contract with US-based Lummus Technology for the supply of CATOFIN Technology for an 843KTA PDH plant.
It also executed two license agreements with an Italian firm called Basell Poliolefine Italia for procuring SPHERIPOL Technology and SPHERIZONE Technology for two polypropylene plants.
AGIC also signed a conditional land allocation letter with Royal Commission for the Project in Jubail.
Construction of the facility is expected to starts during 2021 and Saudi Aramco has agreed to provide propane on a long term basis.