Home Petrochemical Saudi Arabia’s Advanced Petrochemical and SK Gas to build $1.8 billion PDH...

Saudi Arabia’s Advanced Petrochemical and SK Gas to build $1.8 billion PDH and PP Plant

Saudi Arabia’s Advanced Petrochemical Company (APC) has signed an agreement with South Korean company SK Gas for constructing and operating propane dehydrogenation (PDH) and polypropylene plants.

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Hill International secured $318 million Egyptian hospital revamp project

Hill International has secured a contract to provide construction management services for the $318m Kasr Al-Ainy Hospitals refurbishment project for Cairo University...

Actis eyeing $4.5bn fund for Mena renewable energy projects

Actis, an emerging markets investment firm based in London, UK, is eyeing finance worth $4 billion for launching its new international fund...

Abu Dhabi waste energy projects

The Abu Dhabi National Energy Company (Taqa), Emirates Water and Electricity Company (Ewec), and the Abu Dhabi Waste Management Centre (Tadweer) have...

SWPC invites to submit EOI for the Ras Mohaisen IWP

Saudi Arabian Company SWPC has invited developers to submit expressions of interest (EOI) for the planned Ras Mohaisen independent water project (IWP).