London, 12 March (Argus) -- Saudi Arabia’s Advanced Petrochemical Company (APC) and SK Gas agreed to jointly pursue a $900mn propane dehydrogenation project in South Korea.
The 600,000 t/yr PDH plant, which will be located in Ulsan, is expected to be on stream in the first quarter of 2016.
The companies signed a memorandum of understanding that will be in effect for one year, APC said in a statement.
APC, which produces propylene and polypropylene at its Jubail site in Saudi Arabia, will hold a minimum 25pc stake in the joint venture. SK Gas’ expected equity holding was not disclosed.
SK Gas is a major LPG producer in South Korea. It also operates LPG storage terminals in Ulsan and Pyeongtaek with a storage capacity of more than 450,000t.
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