Advanced Petrochemical, SATORP extend propylene supply agreement until 2023

Advanced Petrochemical Co. inked on Tuesday an amendment of its short-term agreement to purchase polymer-grade propylene from Saudi Aramco Total Refining and Petrochemical Co. (SATORP), the company said in a bourse statement.

The deal was extended for another term starting from Jan.1, 2019 until July 31, 2023.

Under the amended agreement, SATORP will increase the quantity of propylene supplied to Advanced from 80,000 metric tons annually to 100,000 metric tons ±15 percent, effective from Jan. 1, 2018.

The supply of outsourced propylene for the extended period will contribute to increase the company’s revenue and profitability, the statement said.

The petrochemical producer added that the amendment will impact financial results for the years 2018 to 2023, based on prevailing market prices of propylene and polypropylene during the period.