Saudi Arabia’s Advanced Petrochemical Company (Advanced) has announced that its interim agreement with the local Global Company for Downstream Industries (GDI) to set up a Pygas and Pyoil downstream project in Jubail Industrial City II has ended.
The Heads of Agreement (HOA) was signed in November 2017, Advanced said in its stock exchange statement filed on Monday.
“The parties have not reached an agreement regarding the project,” the statement said.
The 2.17 billion Saudi riyals ($580 million) project with an overall product capacity of approximately 300 kilo tonnes per annum was scheduled to start operations in the first half of 2021, according to Advanced’s 2017 statement.
The statement had said that the project’s product portfolio would include more than 12 specialty chemicals including hydrocarbon resins, aromatic solvents, premium wash oils, naphthalene and other products to be produced for the first time in Middle East and North Africa region.
Advanced is one of the top manufacturers of propylene and polypropylene in the region while GDI focuses on developing downstream petrochemicals and specialty chemicals in Saudi Arabia.
(Writing by SA Kader; Editing by Anoop Menon)
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© ZAWYA 2021