Saudi AGIC signs agreements for new PDH, PP plants

Saudi petrochemical producer Advanced Petrochemical through its subsidiary Advanced Global Investment (AGIC) has signed contracts with Samsung and Tecnimont, for the construction of propane dehydrogenation (PDH) and polypropylene (PP) plants, respectively, for its planned Advanced Polyolefins (APOC) facility at Jubail, Saudi Arabia.

The engineering, procurement and construction (EPC) contracts for the PDH plant were signed with Samsung Engineering and Samsung Saudi Arabia at a valuation of $1.2bn. The planned PDH plant will have a nameplate capacity of 843,000 t/yr, and will use Catofin technology from Lummus Technology of the US.

The EPC contracts for the two PP plants were signed with Tecnimont and Tecnimont Arabia at a valuation of $485mn. The planned PP plants will have a combined nameplate capacity of 800,000 t/yr and will use Basell Poliolefine Italia's Spheripol and Spherizone technologies.

The planned PDH and PP plants will be located in Jubail Industrial City II. The contracts have a term of 37 months from the notice to proceed.

AGIC in December 2020 signed offtake sales agreements with traders Vinmar, Tricon and Mitsubishi for PP volumes to be delivered from its planned APOC plant, which will last until 31 December 2028.

APOC is a joint venture between AGIC and South Korea's SK Gas Petrochemical (SKGP), with the shareholding split at 85pc and 15pc, respectively, between the two entities.

AGIC's parent Advanced Petrochemical operates a 455,000 t/yr PDH plant and 450,000 t/yr PP plant in Jubail.

As part of a joint venture with Kuwaiti state-owned firm KPC's PIC subsidiary and South Korea's SK Gas, Advanced Petrochemical also operates a 600,000 t/yr PDH plant in Ulsan, South Korea.

By Sam Hashmi