Advanced Petrochemical Company announced the signing of a Memorandum of Understanding (MOU) between Advanced Global Investment Company (AGIC), a subsidiary of Advanced, and SK Gas Co. Ltd, an affiliate of SK Group, South Korea, for the development of a Propane Dehydrogenation (to produce Propylene) and Polypropylene (to produce PP) Project in Jubail Industrial City in the Kingdom of Saudi Arabia.
The total cost of the Project is currently estimated at US$ 1.8 billion (SR 6.75 billion) with a capacity to produce Propylene and PP of 750,000 tons each per annum.
This Project is expected to produce value added PP grades to manufacture PP compounds for the automotive industry as well as other specialized grades that are currently being imported into the Kingdom of Saudi Arabia.
AGIC has already received Propane feedstock allocation from the Ministry of Energy, Industry and Mineral Resources for setting up a Propane Dehydrogenation (PDH) unit (to produce Propylene) and Polypropylene unit (to produce PP) with a capacity of 750,000 Tons each per annum, in Jubail Industrial City, in the Kingdom of Saudi Arabia.
The total cost of the PDH-PP Project is currently estimated at approximately US$ 1.8 Billion (SR 6.75 billion) with a start-up schedule by 2nd half of 2024. As per the allocation letter, the overall project also includes the proposal to set up a 100,000 Tons per year Polypropylene Compounding (PP downstream) unit to cater for the requirements of the potential automotive industry in the Kingdom of Saudi Arabia.
In addition, a portion of the Propylene from the PDH unit will also be utilized to set up an Isopropanol (IPA) unit with a capacity of 70,000 Tons per year. The approximate investment costs for the PP Compounding unit and the IPA unit are expected to be US$ 40 Million (SAR 150 Million) and US$ 100 Million (SAR 375 Million) respectively.
AGIC and SK Gas Co signed another MOU for the development of a Polypropylene Compounding (to produce PP Compounds) Unit in Jubail Industrial City in the Kingdom of Saudi Arabia.
The total cost of the project is currently estimated at US$ 40 million (SR 150 million) to produce PP Compounds with capacity of 100,000 tons per annum to cover wide range of applications including automotive sector. AGIC and SK Gas have also agreed to conduct a detailed feasibility study for a state of the art mixed feed or liquid cracker along with downstream products in the Kingdom of Saudi Arabia.