SK E&C has succeeded in landing a front end engineering and design (FEED) order for a large-scale propane dehydrogenation (PDH) plant from Saudi Arabia.
SK E&C announced on May 18 that it has signed an FEED contract for a PDH plant and utility and offsite facilities with a joint venture company between SK Gas and Advanced Global Investment Co. (AGIC) of Saudi Arabia.
The project will cost about US$7.55 million. PDH is a process to produce propylene by removing hydrogen from propane gas. Propylene is one of the major basic materials for the petrochemical industry.
The two companies did not hold a contract-signing ceremony and exchanged signed contracts by mail. This project is to carry out the FEED project for a large-scale PDH plant and utility infrastructure producing 843,000 tons of propylene in the Jubail Industrial Complex, 600 km northeast of Riyadh, Saudi Arabian capital. It will take six months to complete the basic engineering work.
The project is meaningful in that it involves SK Gas, an affiliate of SK Group, which has been working with SK E&C. SK Gas set up a joint venture with AGIC, and SK E&C plans to successfully carry out this project based on its rich experience and excellent technology in the PDH plant construction field.
AGIC is a wholly owned subsidiary of Advanced Petrochemical Co. (APC), a petrochemical company that is the main client in the project. APC is a listed Saudi Arabian company founded in 2005 and has a 455,000 tons/year PDH plant and a 450,000 tons/year polypropylene plant in Saudi Arabia. In 2014, SK Gas established SK Advanced in cooperation with Petrochemical Industries Co. (PIC) of Kuwait, and also owns a PDH plant in Ulsan, South Korea which began commercial operations in 2016.