03.11.15. Sadara Chemical Company has entered into two agreements with Sabic and Royal Vopak’s joint venture Jubail Chemicals Storage and Services Company (JCSSC) for the provision of liquid product storage and handling services at King Fahd Industrial Port (KFIP) in Jubail, Saudi Arabia.
The agreements with JCSSC will allow for the storage and export of Sadara’s liquid products from the Kingdom.
Under the tank storage construction agreement, Sadara will sell, as per 30 November 2015, to JCSSC for approximately SR1.76 billion (US$470 million) a tank farm that has been constructed by Sadara at PCQ-2.
This 348,000 cbm tank farm supplements the 220,000 cbm 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.
These agreements lay an important foundation for Sadara’s supply chain in Jubail as the company moves toward production of first products. Sadara is currently building the world’s largest chemical complex ever built in a single phase in Jubail Industrial City II, Saudi Arabia. Construction of the complex is nearing completion, and Sadara is on track to deliver its first products in the second half of 2015, with the complex in full operation approximately 18 months after start up.
Royal Vopak currently holds a 25 percent share interest in JCSSC.