SABIC and Vopak to build $400 million storage facility
Saudi Basic Industries Corporation (SABIC) and Royal Vopak (Vopak) signed Heads of Agreement (HoA) to form a joint venture to build new storage facilities in the Al Jubail Terminal on the east coast of Saudi Arabia.
The joint venture between SABIC and Vopak should be established under the name of Jubail Chemical Storage and Services Company (JCSSC).
In this JCSSC joint venture the partners should share interests:
– SABIC 75%
– Vopak 25%
Specialized in storage and handling facilities for oil derivatives, condensate and bulk chemical products, Vopak runs 84 tank farms in 31 countries with a total capacity of 30 million cubic meters.
Vopak locates its storage terminal along the most important shipping routes.
Through this JCSSC joint venture, SABIC and Vopak are planning to spend $400 million in a new terminal in the King Fahd Industrial Port of Al Jubail in the Eastern Province.
Designed to handle liquids, the first phase of the new terminal should have a storage capacity of 250,000 cubic meters.
This first phase should include the construction of:
– 40 commodities and chemical specialties storage tanks
– Truck handling system
– 5 berths for ship loading facilities.
SABIC and Vopak awarded EPC contract to CNCEC
The number of tanks of the project result from the increase of capacity in the same time as the diversity of the commodities and chemical specialties to be stored and exported.
In that respect, the Al Jubail Chemical Terminal project is planned to accept further expansion depending on final decisions on new projects.
From the companies in competition for this $400 million capital expenditure project, the EPC contract went to China National Chemical Engineering Corporation (CNCEC).
While awarded to a Chinese contractor, SABIC and Vopak intent to build this Al Jubail Chemical Terminal in respect with the highest safety standards.
To be in line with the petrochemical projects decided with ExxonMobil or Shell, SABIC and Vopak expect China National Chemical Engineering Corporation (CNCEC) to complete the construction of the new Al Jubail Chemical Terminal in 2015.