SK E&C to work on petrochemical plant in Saudi Arabia

An SK Advanced factory that produces propylene in Ulsan.

SK E&C announced Monday it has secured a $7.55 million deal to provide front-end engineering design for a propane dehydrogenation (PDH) plant and its utilities in Saudi Arabia.

The construction company said it signed a deal with a joint venture established by SK Gas and Saudi Arabia-based Advanced Global Investment.

Propane dehydrogenation is a process that produces polymer-grade propylene from propane. Propylene is a basic chemical in the petrochemical industry and is used to manufacture products ranging from kitchen utensils to hygiene products.

Under the deal, SK E&C will spend six months conducting the design study in the industrial city of Jubail, a city on the eastern coast of Saudi Arabia. Once complete, the PDH plant will produce 843,000 tons of propylene in a year.

“[The company] plans to win an advantage in the global PDH field competition by successfully completing the latest front-end engineering design,” said SK E&C President and CEO Ahn Jae-hyun in a statement.

BY JIN MIN-JI[jin.minji@joongang.co.kr]