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Kuwait’s Petrochemical Industries Company (PIC), wholly-owned subsidiary of state firm Kuwait Petroleum Corporation (KPC), is to pay $100mn for a stake in a Korean venture which is building a propane dehydrogenation (PDH) plant. The 600,000 tons/year plant, which will convert propane into propylene, is being built at Ulsan in Korea for start-up in the first half of 2016. The SK Advanced project company building the PDH plant, at an estimated cost of $1bn, is currently owned 65% by Korea’s SK Gas and 35% by Saudi polypropylene manufacturer Advanced Petrochemical.
The deal will involve Advanced selling 5% of its equity, which the Saudi firm says will bring in SR16mn. This will be reflected in its first quarter results. Advanced paid $135mn for its original 35% stake in the joint venture. Advanced says that after PIC’s buy-in, the SK Advanced equity split will be SK Gas 45%, Advanced 30% and PIC 25%.
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