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New propane dehydrogenation (PDH) and polypropylene (PP) plant planned in Saudi Arabia

Even as many projects around the globe have begun to delay or cancel projects, Saudi Arabia’s Advanced Global Investment Company (AGIC) and SK Gas Petrochemical (SKGP) of South Korea have formally signed on to construct and operate a new PDH/PP plant with an annual capacity of 843,000 tons of propylene and 800,000 of polypropylene.  The total estimated cost for this project is $1.8 billion.  Construction is expected to begin next year in the Saudi industrial city with a targeted commercial startup in the second half of 2024.

AGIC and SKGP have formed a joint venture named Advanced Polyolefins Company to shepherd this project, with a respective ownership of 85% and 15%.  Lummus Technology of the United States has agreed to license its CATOFIN technology for the PDH portion of the project, and propane feedstock will be sourced long term from Saudi Aramco.  The timing of this project announcement is unusual, since polypropylene developments around the world are likely to be delayed or outright cancelled due to the pandemic driven market conditions.

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From the April 2018 issue of Hydrocarbon Processing


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