APC set to build two major petchem units for $1.8bn
01 May 2020
Saudi-based Advanced Petrochemical Company (APC) said it has signed an agreement with leading South Korean group SK Gas (SKG) 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 capacity of 843,000 tonnes per annum of propylene, while the PDH facility will produce around 800,000 tonnes per annum of polypropylene.
According to AGIC, the entire project will be financed 25 per cent by equity from shareholders and remaining 75 per cent 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 SKG.
AGIC already has signed a licence agreement with Lummus Technology, US for the supply of Catofin Technology for the PDH plant and with Basell Poliolefine Italia for Spheripol Technology and Spherizone Technology for two PP plants.
The Saudi group has already signed up project management consultants for the project, it added.
- Saudi Aramco set for capex cut amid crisis
- Egypt-Saudi power line project bidding put off
- Project delays may hit Saudi cement demand
- APC set to build two major petchem units for $1.8bn
- New residential projects to offer 8,083 homes
