Saudi’s APC to build new PP plant in Al Jubail; signed distributorship agreements
Saudi’s APC to build new PP plant in Al Jubail; signed distributorship agreements
Saudi’s Advanced Petrochemical Company and South Korea’s SK Gas Co Ltd have signed a shareholder agreement to construct a new petrochemical complex in Al Jubail, Saudi Arabia.
The new joint venture named Advanced Polyolefins Company (APC JV) will invest $1.8 billion to build a propane dehydrogenation (PDH) unit that yields 843,000 tons/year of propylene and 800,000 tons/year of PP plant.
The project is expected to break ground in 2021 and would reach commercial production by the second half of 2024.
The company has awarded a series of contracts for technology to be implemented, including the LyondellBasell Industries NV Spherizone and Spheripol technologies for the complex’s two PP lines.
The new PP plants would focus on producing specialty polymers used by manufacturers in the face mask, automotive, pipes, food packaging, and textiles industries.
In the latest filing to the Saudi Tadawul, Advanced Polyolefins Company (APC JV) said that it has signed a long-term offtake contract with major international trading houses, including Vinmar International, Mitsubishi Corporation, and Tricon Dry Chemical for the output from the new PP units. The contract affixed that Vinmar and Tricon would each absorb 250,000 tons/year from the new plant while Mitsubishi would carry 120,000 tons/year.