The Global Advanced Investment Company, a subsidiary of the Advanced Petrochemical Company (Advanced), has signed a partnership agreement with SK Gas Petrochemicals Private Limited, a subsidiary of SK Gas Limited; To establish a closed joint stock company under the name of the Advanced Polyolefins Company.
According to ArabiaNet, the agreement includes establishing and operating two propane gas treatment plants (to produce propylene) and propylene treatment (to produce polypropylene).
The design capacity of the manufacturers is 843 thousand metric tons per year for propylene, and 800 thousand metric tons per year for polypropylene in the industrial city of Jubail, Saudi Arabia, according to the company said in a statement to the Saudi Stock Exchange Tadawul.
The total cost of the project is estimated to be approximately $ 1.8 billion USD 6.75 billion, and 25% of the value of the project will be funded by the two partners, and 75% by borrowing from financing entities.
The advanced global investment company’s share will be 85% in the project company, which the developer will finance, while SK Gas Petrochemical Private Limited will have a 15% stake in the project company.
It is worth noting that the Global Advanced Investment Company has signed a conditional investment agreement with the Royal Commission for Jubail to allocate a plot of land in the industrial city of Jubail in the Basic Industries Area in Jubail (2).
The Global Advanced Investment Company has also signed an agreement with Lummus Technology LLC, USA to use CATOFIN technology for a propane gas treatment plant, and has signed two agreements with Basell Poliolefine Italia Srl, Italy to use SPHERIPOL technology and SPHERIZONE technology for processing manufacturers Propylene design capacity (400,000) metric tons per year for each. A project management consultant was also selected.
Construction is expected to start in 2021 and supply of propane (the main feedstock) from Saudi Aramco in the long run.
It is expected that the financial impact of this investment will start after the start of the commercial operation of the project by the second half of 2024.
