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11-06-2012

Advanced and Aramco Total signed a short-term sales agreement for the supply of propylene

Advanced Petrochemical Company (Advanced) and Aramco Total Refining and Petrochemical Company (Satorp) signed on June 9, 2012  a sales agreement for the supply of 50 thousand metric tons per year of propylene (polymer) from Satorp Refinery (to be built) in Jubail Industrial City (2) to Advanced. Under this agreement, Satorp will provide Advanced with 50 thousand metric tons of propylene annually for an initial period of three years and it will be renewed on an annual basis. And it is expected to commence supply starting from January 1, 2014 and Satorp will supply propylene by a pipeline from Jubail (2) to Jubail (1). This agreement will provide additional supplies of propylene to Advanced which will contribute to the increase of production of polypropylene and thereby increase the revenues from the sale of Polypropylene. Under this Convention, both parties can consider the possibility of supplying additional quantities of propylene for longer periods in the future.

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