Saudi group set to build two major petchem units for $1.8bn
RIYADH, April 8, 2020
Saudi-based Advanced Petrochemical Company said it has signed an agreement with leading South Korean group SK Gas for the construction and operation of two major petrochemical facilities - a propane dehydrogenation (PDH) and a polypropylene unit - in the kingdom at an investment of $1.8 billion.
The Saudi group said, as per the deal, its subsidiary Advanced Global Investment Company (AGIC) will set up a new joint venture, Advanced Polyolefins Company, along with the Korean firm for the smooth operation of these two plants being set up at Jubail Industrial City.
The PDH plant will boast a total capacity of 843,000 tonnes per annum of propylene, while the PDH facility will manufacture around 800,000 tonnes per annum of polypropylene.
According to AGIC, the entire project will be financed 25% by equity from shareholders and remaining 75% will be financed by JV Co through borrowing from lenders.
Under this agreement, AGIC will own 85 per cent equity stake in JV Co which will be financed by Advanced while the remaining 15 per cent will be owned by SKGP.
AGIC already has signed a licence agreement with Lummus Technology, US for the supply of Catofin Technology for the 843 KTA PDH plant besides two other licence pacts with Basell Poliolefine Italia for the supply of Spheripol Technology and Spherizone Technology for two PP plants with capacity of 400 KTA each.
The Saudi group has already signed up project management consultants for the project, it added.-TradeArabia News Service
