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SABIC and Vopak form joint venture for new Al Jubail terminal

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%

SABIC is one of the largest petrochemical company in the world active in bulk  chemicals and performances chemicals, plastics and polymer, fertilizers.

70% owned by the Saudi Government, SABIC strategy is directed to develop the downstream activities in Saudi Arabia  and to go global in partnership with international oil companies

Home based in Rotterdam, in The Netherlands, Vopak is the largest independent storage company in the world for oil and gas and petrochemical products.

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

This new Al Jubail Chemical Terminal project is driven by the necessity for SABIC to adjust its storage and export capacities to the new petrochemical projects.

The Al Jubail Industrial Zone is one of the largest  petrochemical complex in the world where SABIC is planning to increase production capacities  in its own facilities.

In addition SABIC decided these last weeks new giant projects with ExxonMobil in Kemya and with Shell in Sadaf.

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.

On the same time as SABIC and Vopak decided to form the JCSSC joint venture, they also selected the engineering company to award the engineering, procurement and construction (EPC) contract.

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.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

1 Comment to “SABIC and Vopak form joint venture for new Al Jubail terminal”

  1. How’s the shareholding only Vopak and Sabic jv or royacommito and marafiq are shear holders too

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