MOSCOW (MRC) -- Saudi Arabia’s Advanced Petrochemical Co. plans to invest in a project worth around USD1 billion to produce propylene in South Korea, as per Plastemart.
The propane dehydrogenation (PDH) project, a joint venture with South Korea’s SK Gas, is due to start up in H1-2016, as per a company statement on the Saudi bourse.
The project, with annual production capacity of 600,000 tons, will be financed 40% equity and 60% debt. Advanced will hold a 35% stake in the project.
As MRC wrote previously, in 2012, Advanced Petrochemical Company (Advanced) and Aramco Total Refining and Petrochemical Company (Satorp) signed on a sales agreeent for the supply of 50,000 tonnes per year of propylene from Satorp Refinery to be built in Jubail Industrial City (2) to Advanced. Under this agreement, Satorp will provide Advanced with 50,000 tonnes of propylene annually for an initial period of three years and it will be renewed on an annual basis. And it was expected to commence supply starting from January 1, 2014 and Satorp will supply propylene by a pipeline from Jubail (2) to Jubail (1).
MRC