Saudi AGIC signs offtake agreements for new PP project

Saudi petrochemical producer Advanced Petrochemical has signed through its subsidiary Advanced Global Investment (AGIC) offtake sales agreements of polypropylene with traders Vinmar, Tricon and Mitsubishi. These will last until 31 December 2028, with volumes to be delivered from its planned Advanced Polyolefins (APOC) plant in Jubail, Saudi Arabia.

The PP offtake agreements total 620,000 t/yr, with Vinmar and Tricon procuring 250,000 t/yr each, while Mitsubishi will take 120,000 t/yr. The agreement will take effect on the date of commercial operations commencing at APOC, which is targeted for the second half of 2024. No details were known on the underlying pricing basis of the offtake agreements.

APOC’s PP plant will have a nameplate capacity of 800,000 t/yr, for which feedstock propylene would be supplied from a planned, integrated propane dehydrogenation unit. The 620,000 t/yr offtake agreements indicate that 77.5pc of the upcoming PP plant’s nameplate capacity has been committed.

APOC is a joint venture between AGIC and South Korea’s SK Gas Petrochemical (SKGP), with the shareholding split at 85pc and 15pc respectively between the two entities.

About Stu Turley 3063 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.