Saudi Arabia’s petrochemical company has agreed with SK Gas Petrochemical to build a propane dehydrogenation and propylene facility in Saudi Arabia for a combined fee of $1.8 billion, Zawya reported.

The projects will be set up in Jubail Industrial City, with the capacity to produce more than 1.6 million tonnes of propylene and polypropylene every year.

Work is expected to begin on the project in 2021 and will be supplied with propane from Saudi Aramco on a long-term basis. Commercial operations are scheduled to start by the second half of 2024.