A memorandum of understanding (MoU) has been signed between Advanced Global Investment Company (AGIC) for APC and SK Gas for the project that will produce value added PP grades to manufacture PP compounds for the automotive industry as well as other specialised grades that are imported into the Kingdom. 

Project is currently under study stage.

Saudi Arabia's Advanced Petrochemical Company (ADVANCED) announced that it is setting up a joint venture project at a total cost of approximately $1.8 billion (6.75 billion Saudi riyals) to manufacture propylene and polypropylene in Jubail Industrial City. Its subsidiary Advanced Global Investment Company (AGIC) has signed a shareholders' agreement with Singapore-headquartered SK Gas Petrochemical Pte. Ltd. (SKGP), a subsidiary of South Korea's SK Gas Co, to incorporate a new JV called Advanced Polyolefins Company. The JV will construct and operate a Propane Dehydrogenation (PDH) plant with a nameplate capacity of 843,000 tons per annum (tpa) of propylene and two Poly Propylene (PP) plants with a total capacity of 800,000 tpa of polypropylene. Advanced Polyolefins Company expects to begin construction in 2021 and commence commercial operations by the second half of 2024. Saudi Aramco would supply the project with its main feedstock propane on a long-term basis. The project would have a debt equity ratio of 75:25. AGIC would own 85 percent equity stake (financed by Advanced) in the JV with remaining 15 percent owned by SKGP. AGIC had signed conditional land allocation letter with the Royal Commission for the project in Jubail II. The company has signed a license agreement with US-based Lummus Technology for the supply of CATOFIN Technology for the PDH plant and two license agreements with Italy's Basell Poliolefine Italia for the supply of SPHERIPOL Technology and SPHERIZONE Technology for the two PP plants with capacity of 400,000 tpa each. Project management consultants have been appointed for the project, the statement added without naming the firms.