Saudi Arabia’s Advanced Petrochemical Company has signed an agreement with South Korean company SK Gas for constructing and operating propane dehydrogenation (PDH) and polypropylene (PP) plants.
The project location is in Jubail Industrial City, eastern region of Kingdom of Saudi Arabia. The plant will be built with an investment of $1.8 billion.
The project will have a design capacity of 843,000 metric tons per annum of propylene and 800,000 metric tons per annum of polypropylene
Advanced Global Investment Company (AGIC), a subsidiary of Advanced and SK Gas Petrochemical (SKGP), signed a shareholder agreement to create a joint venture (JV) company called Advanced Polyolefins Company.
About 25% of the project will be financed using equity from shareholders, while the remaining 75% will be financed by the JV from borrowing from lenders.
AGIC will own an 85% equity stake in the newly formed JV company, while the remaining 15% will be owned by SKGP.
In addition, AGIC has signed a license agreement with US-based Lummus Technology for the supply of CATOFIN Technology for a 843KTA PDH plant.
It also executed two licence agreements with an Italian firm called Basell Poliolefine Italia for procuring SPHERIPOL Technology and SPHERIZONE Technology for two PP plants.
AGIC also signed a conditional land allocation letter with Royal Commission for the Project in Jubail.
Construction of the facility is expected to begin during 2021 and Saudi Aramco has agreed to supply propane on a long term basis.
Source: https://bit.ly/34fPjQJ
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