Advanced/SK Gas to build US$1.8 bn PDH/PP complex in Saudi Arabia

Covid-19: LyondellBasell to slow construction on PO/TBA project

Advanced Global Investment Company (AGIC), a subsidiary of Saudi Arabian PP producer Advanced Petrochemical, is to form a joint venture with South Korea’s SK Gas Petrochemical Pte. (SKGP), a subsidiary of SK Gas, to build a propane dehydrogenation (PDH)/PP complex in Jubail, Saudi Arabia.

The jv agreement follows a Memorandum of Understanding (MoU) signed in June, 2019.

The new jv known as Advanced Polyolefins will invest US$1.8 billion and will be owned by AGIC with 85% share and SK Gas Petrochemical holding the remainder.

The facility will have a nameplate capacity to manufacture 843,000 tonnes/year of propylene and 800,000 tonnes/year of polypropylene.

AGIC has also inked a license agreement with US-based Lummus Technology for the supply of Catofin technology and with LyondellBasell for Spheripol and Spherizone PP technologies.

According to AGIC, about 25% of the finance for the project has been secured by equity from shareholders and remaining 75% will be financed through loans by the newly formed JV.

Saudi Aramco will supply propane for the project on a long-term basis, for which it has also appointed project management consultants.

Construction is expected to start in 2021 with commercial operations scheduled by the second half of 2024.

Share via
Copy link
Powered by Social Snap