- Sadara and Jubail Chemicals Storage and Services Company sign port-related agreements
Sadara Chemical Company (Sadara) has entered into two agreements with Jubail Chemicals Storage and Services Company (JCSSC), a joint venture between Sabic and Royal Vopak of the Netherlands, for the provision of liquid product storage and handling services at the King Fahd Industrial Port (KFIP) in Jubail, Kingdom of 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 SR 1.76 billion (USD 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 startup.
Royal Vopak currently holds a 25% share interest in JCSSC.
Notes to the editors
About Sadara
Sadara is a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company. With a total investment of about $20 billion, Sadara is building a world scale chemical complex in Jubail Industrial City II in Saudi Arabia's Eastern Province. Comprised of 26 world scale manufacturing units, the Sadara complex is the world's largest to be built in a single phase and will be the first in the Middle East to use refinery liquids, such as naphtha, as feedstock. By using best-in-class technologies to crack refinery liquid feedstock, Sadara will enable many industries that either currently do not exist in Saudi Arabia or only exist through imports of raw materials. The adjacent PlasChem Park, a unique collaboration between Sadara and the Royal Commission for Jubail and Yanbu, will create more value downstream, generating unprecedented investment, innovation, economic growth and thousands of jobs. Sadara is on track to deliver its first products by the end of 2015, with the complex anticipated to be in full operation in 2016.
About SABIC
Saudi Basic Industries Corporation (SABIC) ranks as the world's second largest diversified chemical company. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.SABIC recorded a net profit of SR 23.3 billion (US$ 6.2 billion) in 2014. Sales revenues for 2014 totaled SR 188.1 billion (US$ 50.2 billion). Total assets stood at SR 340 billion (US$ 90.7 billion) at the end of 2014.SABIC's businesses are grouped into Chemicals, Polymers, Fertilizers, Metals and Innovative Plastics. It has significant research resources with innovation hubs in five key geographies - USA, Europe, Middle East, South East Asia and North East Asia. The company operates in more than 50 countries across the world with around 40,000 employees worldwide. SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific. Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent publicly traded on the Saudi stock exchange.
About Royal Vopak
Royal Vopak is the world's leading independent tank storage provider for the oil and chemical industry. As of 2 November 2015, Vopak operates 73 terminals in 26 countries with a combined storage capacity of 34.1 million cbm, with another 4.6 million cbm under development, to be added during the period 2015 - 2019. Vopak's mission is to ensure safe, reliable and effective storage and handling of bulk liquid products at key marine locations that are critical to its customers around the world. The majority of its customers are companies operating in the oil, chemicals and gas sector, for which Vopak stores a large variety of products destined for a wide range of industries. Vopak's strategic focus is on four categories of terminals: Major hubs supporting intercontinental products flows,Terminals facilitating growth in global gas markets, Import distribution terminals in major markets with structural deficits, Industrial and chemicals terminals, in the Americas, the Middle East and Asia.
For more information please contact:
Press
Liesbeth Lans, Manager External Communication,
Telephone : +31 (0)10 4002777, e-mail: global.communication@vopak.com
Analysts and investors
Chiel Rietvelt, Head of Investor Relations,
Telephone : +31 (0)10 4002776, e-mail: investor.relations@vopak.com