SK E&C wins $7.5m deal to construct PDH plant in Saudi Arabia

SK Engineering and Construction said Monday it has won a construction deal worth $7.55 million for a mega-sized Propane Dehydrogenation plant in Saudi Arabia.

According to the South Korean construction company, the project is ordered by the joint venture of its energy arm SK gas and Saudi Arabian Advanced Global Investment Company. SK E&C will be in charge of Front End Engineering Design for the PDH plant and utility and off-site facilities, the company said.

PDH is a process to produce propylene by removing hydrogen from propane gas. The propylene produced is polymerized to polypropylene to be used for a wide variety of purposes, from industrial materials such as car trims to daily merchandise, such as kitchen wares.

Under the project, SK E&C will embark on the FEED work for the PDH plant and utility facilities that can produce an annual amount of 843,000 tons of propylene, in Jubail Industrial City, located 600 kilometers from the country’s capital Riyadh. The duration of the project is set for about six months, the company said.

By Jo He-rim (herim@heraldcorp.com)