Saudi Arabia-based, Advanced Petrochemical Company signed on Tuesday, 14 November a 6-month memorandum of understanding (MoU) with Global Company for Downstream Industries (GDI) to develop Pygas and Pyoil downstream project at a value of SAR 2.17 billion ($580 million).
The project is located in in Jubail Industrial City II, according to a statement on Wednesday to the Saudi Stock Exchange (Tadawul).
Financing the project will be financed through 30% of shareholders’ equity, and by 70% through loans.
The new project will produce 12 chemicals, including hydrocarbon resins, aromatic solvents, premium wash oils, naphthalene, and other products.
Advanced petrochemical forecasted that its stake in the project will be between 30% and 40% of the capital through its subsidiary, Advanced Global Investment Co. (AGIC).
Advanced Petrochemical Company owns 95% stake in AGIC.
The Saudi petrochemical company noted that the project’s total capacity is approximately 300,000 tonnes per year, and it is expected to be operated in the first half of 2021.
By 12:09 pm KSA time, Advanced Petrochemical’s stock inched up 0.44% to reach SAR 45.40.