Jubail Chemicals Storage and Services Company (JCSSC) is set to acquire a 348,000 m3 storage tank facility in Jubail, Saudi Arabia.
As part of two agreements with JCSSC, a joint venture between Sabic and Vopak, Sadara Chemical Company will sell a tank facility that has been constructed by Sadara at PCQ-2 for $470 million ($426 million). This facility supplements the 220,000 m3 port terminal and related port facilities that are currently under construction and have been partly commissioned by JCSSC.
Under the terminal service agreement, JCSSC will provide Sadara with liquid product storage and handling services at KFIP for an initial term of 20 years.
Vopak says in a statement that these agreements lay an important foundation for Sadara’s supply chain in Jubail as the company moves toward production of its 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 work is almost complex and Safara is on track to deliver its first products in the second half of 2015, with the complex in full operation around 18 months after start up.