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Saudi AGIC signs offtake agreements for new PP project

Saudi petrochemical producer Advanced Petrochemical has signed through its subsidiary Advanced Global Investment (AGIC) offtake sales agreements of polypropylene with traders Vinmar, Tricon and Mitsubishi. These will last until 31 December 2028, with volumes to be delivered from its planned Advanced Polyolefins (APOC) plant in Jubail, Saudi Arabia.

The PP offtake agreements total 620,000 t/yr, with Vinmar and Tricon procuring 250,000 t/yr each, while Mitsubishi will take 120,000 t/yr. The agreement will take effect on the date of commercial operations commencing at APOC, which is targeted for the second half of 2024. No details were known on the underlying pricing basis of the offtake agreements.

APOC’s PP plant will have a nameplate capacity of 800,000 t/yr, for which feedstock propylene would be supplied from a planned, integrated propane dehydrogenation unit. The 620,000 t/yr offtake agreements indicate that 77.5pc of the upcoming PP plant’s nameplate capacity has been committed.

APOC is a joint venture between AGIC and South Korea’s SK Gas Petrochemical (SKGP), with the shareholding split at 85pc and 15pc respectively between the two entities.

Source: www.argusmedia.com