APC - Propane Dehydrogenation (PDH) & Polypropylene (PP) Complex

General Information
Owner Advanced Petrochemical Co
Masterplan Project (Parent Profile)
Location Jubail, Eastern Province, Saudi Arabia
Status --
Sector Chemical, Production, Petrochemical Plant
Contract Type Engineering Procurement Construction (EPC)
Onshore/Offshore Onshore
Greenfield/Brownfield Greenfield
Progress 50
Estimated Budget Value ---
Contract Value 0
Net Value $1855m
Award Date April 2021
Completion Date March 2027
Last Updated On February 2024
ProjectId (Old, New) 46495, 295671


Advanced Petrochemical Company (APC), the JV Advanced Global Investment Company (AGIC), and SK Gas are undertaking the development of the Propane Dehydrogenation (PDH) & Polypropylene (PP) Complex in Jubail, Saudi Arabia.

The project aims to produce value-added PP grades to manufacture PP compounds for the automotive industry as well as other specialized grades that are currently being imported into the Kingdom of Saudi Arabia.

The 25% of project finance is secured through equity from shareholders and the remaining 75% will be financed by the newly formed JV, with borrowing from lenders.

The US$3200 million project includes the following:

A. Propane Dehydrogenation Unit (PDH) includes the following:

1. Construction of a production unit with the capacity of 843,000tpa

2. Installation of reactors for propane dehydrogenation

3. Installation of heaters

4. Installation of the feed/effluent heat exchange system

5. Installation of cooling and compression equipment for product stream

6. Installation of Propane/Propylene splitter

7. Installation of the catalyst regeneration system

8. Construction of associated facilities

B. Polypropylene Unit (PP) includes the following:

1. Construction of a two production units with the capacity of 800,000tpa each

2. Construction of Propylene storage and feed transfer system

3. Construction of C3 splitter unit and product recovery

4. Installation of gas-phase PP reactors

5. Installation of heat exchange systems

6. Installation of the emission control system and flare unit

7. Construction of associated facilities

C. Isopropanol (IPA) includes the following:

1. Construction of storage facilities (70,000 t/y)

2. Construction of control room

3. Laying of inter-connecting flowlines

4. Instrumentation & Mechanical works

5. Construction of associated facilities

Second Section

26 February 2024

PDH & PP Complex: Polypropylene (PP) Package: The construction works have been progressing on the project and completion is expected by Q4, 2026.

20 February 2024

Isopropanol (IPA) Package: SGC eTEC Company has been appointed as the Engineering, Procurement and Construction (EPC) Contractor with the value of US$192 million.

17 January 2024

Propane Dehydrogenation, Utilities & Offsites Package: Construction works are ongoing on the project and are expected to be completed by May, 2024.

15 December 2023

The main contract tender has not yet issued.

16 October 2023

PDH & PP Complex: Propane Dehydrogenation, Utilities & Offsites Package: Mammoet has been appointed as an equipment supply contractor.

20 June 2023

Lummus Technology has been appointed as technology provider for the project.

15 May 2023

Construction works are expected to commence in June 2023 on the Polypropylene (PP) Package.

13 April 2023

Isopropanol (IPA) Package: The funding secured.

15 March 2023

Construction works are progressing and are expected to be completed by 2024 on the PDH & Utilities & Offsites package. (Source: MEED)

29 January 2023

Construction works have progressed up to 60 per cent on the Propane Dehydrogenation (PDH) project. (Source: MEED)

11 January 2023

Construction works have not yet commenced on the Polypropylene (PP) Package.

09 December 2022

In December 2022, EPC Construction works have progressed up to 45 per cent and the project is expected to be completed by the second quarter of 2024.

11 July 2022

The client has signed sharia-compliant Islamic facility agreements of $1.6bn with a consortium of nine financial institutions i.e. Alinma Bank, Al-Rajhi Banking and Investment Corporation, Arab National Bank, Arab Petroleum Investments Corporation, Bank Albilad, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank for the development of the project. (Source: MEED)

16 May 2022

Construction works are ongoing on Propane Dehydrogenation (PDH) & Utilities & Offsites packages as per the schedule.

22 September 2021

Yokogawa Electric Company is still awaiting final order for sub-contracting works to provide electrical control systems for Propane Dehydrogenation (PDH) and Polypropylene (PP) Packages. Currently negotiation are underway with Samsung Engineering and Maire Tecnimont and it is expected to be over by Q4 2021. (Source: MEED)

24 June 2021

Detailed engineering works have commenced on Polypropylene (PP) Package

18 April 2021

Yokogawa Electric Company is expected to be awarded as the subcontractor for electrical control systems, plus other equipment and systems. (Source: MEED)

15 April 2021

The main contract for Polypropylene (PP) Package has been awarded to Maire Tecnimont for a contract value of US$500m and for Propane Dehydrogenation (PDH) & Utilities & Offsites package to Samsung Engineering Co Ltd for a contract value of US$653m.

08 April 2021

The main contract tender is expected to be awarded by May 2021.

08 February 2021

ITB has been issued and the bid submission took place on January 31, 2021. Fluor Corporation, Hyundai E&C, Maire Tecnimont, Samsung Engineering, JV of Sinopec Engineering & Sinopec Services and SK E&C have submitted bids. (Source: MEED)

28 December 2020

The construction works are expected to commence in 2021 with the completion scheduled for second half of 2024.

11 October 2020

Advanced Petrochemical Company has signed an agreement with SK E&C for the development of Isopropanol (IPA) plant at the planned PDH & PP plant with the additional value of US$80 million.

27 August 2020

FEED works are ongoing on the project and is expected to be completed by September 2020. The main contract tender is expected to be issued by the end of October 2020.

20 May 2020

SK E&C has been appointed as the FEED contractor with the contract value of US$7.5 million and contract duration of 6 months. Fluor Corporation has been appointed as the Project Management Consultant (PMC).

30 March 2020

The construction works are expected to be commenced by 2021 with the scheduled completion by the second half of 2024. AGIC has signed a conditional land allocation letter with Royal Commission in Jubail 2 for the development of the project and has also signed a license agreement with US-based Lummus Technology for the supply of CATOFIN Technology for PDH plant and two other license agreements have also been signed with Italy’s Basell Poliolefine Italia, for the supply of SPHERIPOL Technology and SPHERIZONE Technology for two PP plants.

07 November 2019

Preliminary technical studies are ongoing on the project. Banque Saudi Fransi and Synergy Consulting is working as the financial advisers. (Source: MEED)

26 June 2019

Advanced Global Investment Co (AGIC), a subsidiary of Advanced Petrochemical Company (APC) has signed an MoU with SK Gas, a subsidiary of South Korea’s SK Group for the development of the project.

09 April 2019

Pre-feasibility studies are underway. (Source: MEED)