Advanced signs deal with SATORP to extend propylene supply to 120,000 MTA until 2025

Agreement signing ceremony

Advanced Petrochemical Co. signed an amendment to the short-term agreement with Saudi Aramco Total Refining and Petrochemical Co. (SATORP) for the supply of propylene, the company said in a bourse statement today, Jan. 5.

The contract duration was extended from Dec. 30, 2021, to Dec. 27, 2025.

As per the amendment, the companies agreed to increase the quantity of propylene from 100,000 metric tons per annum (MTA) to 120,000 MTA (with ± 10%) from Dec. 30, 2021.

The company said that the supply of outsourced propylene for an extended period will increase the sales volume.

The agreement will impact the financial results for 2022 to 2025 based on prevailing market prices of propylene and polypropylene during those years.

In June 2012, Advanced signed an agreement with SATORP to buy 50,000 MTA of propylene from SATORP refinery in Jubail Industrial City 2.

In August 2013, it agreed to purchase an additional 30,000 MTA, bringing the total supply from SATORP to 80,000 MTA.

In December 2017, Advanced agreed to purchase 100,000 MTA from 80,000 MTA.