Advanced Petrochemical to invest in 600,000 tpa South Korean PDH plant

16-Sep-14

Saudi Arabian firm Advanced Petrochemical Company has decided to invest in propane dehydrogenation (PDH) plant with SK Gas in South Korea for the production of propylene. The US$1bln project, which is scheduled to start up in H1-2016, will have capacity to produce 6,00,000 tpa of propylene. The Board of Directors of Advanced Petrochemical Company approved the equity investment of 35% in PDH plant with SK Gas, for the production of propylene in South Korea, through its subsidiary Advanced Global Investment Company (AGIC) which is owned 95% by Advanced and sources of AGIC equity participation will be announced later. The total cost of the project is expected to be approximately US$1 bln and the project will be financed 40% equity and 60% debt. The project has commenced the construction activities and it is scheduled to start up in the first half of 2016, with a nameplate capacity of 6,00,000 metric tonnes per annum. The financial impact of above investment is expected after the commencement of commercial operation of the project in 2016.