AGIC, SKGP plan Saudi PDH, PP project

Saudi petrochemical producer Advanced Global Investment (AGIC) and South Korea's SK Gas Petrochemical (SKGP) are planning a propane dehydrogenation (PDH) and polypropylene (PP) project in Saudi Arabia's Jubail.

Construction is expected to start next year with commercial operations targeted for the second half of 2024. AGIC will own 85pc of the 843,000 t/yr PDH and 800,000 t/yr PP units, with the remainder owned by SKGP.

AGIC has signed a licensing agreement with US engineering firm Lummus for the supply of Catofin technology for the PDH plant. It also signed another agreement with Dutch chemicals firm LyondellBasell for the use of Spheripol and Spherizone technology for the two 400,000 t/yr PP units. Propane feedstock to the PDH unit will be supplied by Saudi Arabia's state-owned Saudi Aramco.

AGIC parent Advanced Petrochemical currently operates a 455,000 t/yr PDH unit and 450,000 t/y PP plant in Jubail. SK Gas and Advanced also operate the SK Advanced joint venture in South Korea, which also includes Kuwaiti state-owned firm KPC's PIC subsidiary, that operates a 600,000 t/yr PDH unit in Ulsan.

By Muhamad Fadhil

source: Argus Media