SAUDI ARABIA: Sadara enters into agreements with JCSSC for storage & handling services at KFIP

Sadara Chemical Co. has entered into two agreements with Jubail Chemicals Storage and Services Co. (JCSSC), a joint venture of Sabic and Vopak, for the provision of liquid product storage and handling services at the King Fahd Industrial Port (KFIP) in Jubail, Saudi Arabia.

Under the tank storage construction agreement, Sadara will sell a 348,000 cu m tank farm to JCSSC for approximately USD470-million. The tank farm supplements a 200,000 cu m port terminal and related port facilities that are under construction and have been partly commissioned by JCSSC.

Under the terminal services agreement, JCSSC will provide Sadara with liquid product storage and handling services at KFIP for an initial term of 20 years.

The agreements lay an important foundation for Sadara's supply chain in Jubail as the company moves toward production at it USD20-billion chemical complex, currently under construction there.

Comprised of 26 world-scale manufacturing units, the Sadara chemical complex is expected to begin delivering its first products by the end of this year. Full site operations are expected by the end of 2016.

Source: Weekly “PetroChemical News”, Durham, NC, USA; 9 Nov 2015
(Syed Rashid Ali, Karachi, Pakistan)