Saudi Arabia’s Petrochemical Company has entered into a deal with South Korea’s SK Gas to construct and operate two major petrochemical facilities; a propane dehydrogenation (PDH) and a poly propylene unit in the kingdom at an investment of $1.8 billion, Trade Arabia reports.
Petrochemical Company in a statement said its subsidiary Advanced Global Investment Company (AGIC) will drive the project by setting up a new joint venture, Advanced Polyolefins Company, along with the Korean firm.
AGIC will own 85% equity of the joint venture (JV Co.) while SK Gas will control 15. The projects will be financed 25 per cent by equity and the remaining by JV Co.
The plants will be set up at Jubail Industrial City and PDH will produce 843,000 tons per annum of propylene, while the PDH facility will manufacture around 800,000 tons per annum of polypropylene, Trade Arabia reports.