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One of Advanced Petrochemical's plants
Advanced Petrochemical Co.’s subsidiary, Advanced Global Investment Co. (AGIC), signed on April 13, 2021, engineering, procurement and construction (EPC) contracts with Samsung Engineering Co. Ltd. and Samsung Saudi Arabia Co. Ltd. for the construction of propylene plant in Jubail Industrial City II, at a value of $1.2 billion.
The plant will produce 843,000 tons of propylene per annum with all required off-sites and utilities by utilizing CATOFIN technology from Lummus Technology LLC, US, Advanced said in a bourse filing.
In a separate statement, the company said that AGIC also signed EPC contracts with Tecnimont S.p.A and Tecnimont Arabia Ltd. for the construction of two polypropylene plants in Jubail Industrial City II at a total value of $485 million.
The polypropylene plants will have a capacity of 800,000 tons per annum, and will use Spheripol and Spherizone technologies by Basell Poliolefine Italia S.r.l, Italy.
The contracts have a term of 37 months from the notice to proceed as per the provisions of the contracts.
The financial impact is expected to be reflected after the commencement of commercial operations by H2 2024.
No related parties are included in this contract, the statement added.
In March 2020, Advanced signed a partnership agreement between AGIC and SK Gas Petrochemical Pte. Ltd. (SKGP), a unit of SK Gas Co. Ltd., according to data compiled by Argaam.
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