Advanced Petrochemical Company (Advanced) has signed a short-term sales agreement with Saudi Aramco Total Refining and Petrochemical (Satorp) for the supply of propylene from the Satorp Refinery once the facility has been completed
Under the agreement, Satorp will provide Advanced with 50,000 metric tonnes of propylene annually for an initial period of three years, after which the deal can be renewed on an annual basis.
The supply deal has been scheduled to start on January 1, 2014 and Satorp will supply the propylene via a pipeline from Jubail 2 to Jubail 1.
In a statement, Advanced said that in the future both companies would consider the supply of additional quantities and the option to upgrade the agreement to a long-term supply deal.
SATORP, a joint venture between Saudi Aramco and Total, has said it expected its new refinery in Jubail 2 to be fully operational by the end of 2013.
The full-conversion refinery will produce 400,000 barrels per day of Arabian heavy crude oil and will be integrated with a petrochemicals complex that will produce olefins and aromatics.
