The Port of Salalah in Oman and national company OCTAL Petrochemicals have signed an agreement on the storage and transport of chemicals at the port.
The contract oversees the ongoing development of Salalahs first liquid chemicals terminal, which will support OCTALs production capacity expansion.
The chemicals will be transported via a US$50 million (39.3 million) purpose-built terminal or within the Port of Salalah.
The agreement also covers the leasing of land on which the terminal is being built.
Two 5,000 m3 tanks for receiving mono-ethylene glycol (MEG) have already been completed.
A third tank for MEG, a key ingredient in the manufacture of polyethylene terephthalate (PET), will be delivered by Q3 next year.
By 2011, the terminal will comprise of nine tanks, three for MEG and the remainder for other liquid chemicals.
OCTAL will have a dedicated berth to receive tanker shipments and build specialised facilities to pipe liquid chemicals underground to its manufacturing plant in the Salalah Free Zone.
The liquid chemicals tank farm is the first of its type in the region, and by piping chemicals underground to our plant in the Salalah Free Zone, the delivery process involves no disruption to the operation of the port and maximises public safety, OCTAL Petrochemicals MD Nicholas Barakat says.