Under the tank storage construction agreement, Sadara will sell a tank farm constructed by the company at PCQ-2 to JCSSC, as of 30th November, 2015 for about SR1.76 bill ($470 mill).
This 348,000 cu m tank farm supplements the 220,000 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.
Sadara is currently building the world's largest chemical complex built in a single phase in Jubail Industrial City II. Construction of the complex is nearing completion, and Sadara is on track to deliver its first products in the second half of this year, with the complex in full operation about 18-months after startup.
Royal Vopak currently holds a 25% share interest in JCSSC.
Sadara is a joint venture between Saudi Aramco and The Dow Chemical Company. With a total investment of about $20 bill, Sadara is building a chemical complex in Jubail Industrial City II in Saudi Arabia's Eastern Province.
Comprised of 26 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.
The adjacent PlasChem Park, a collaboration between Sadara and the Royal Commission for Jubail and Yanbu, will create more value downstream.
Second - Gulf Petrochem Group has announced the inauguration of its new terminal in Hamriyah, Sharjah.
The terminal is located within Hamriyah Free Zone (HFZ) and will provide storage capacity to meet the growing demand within the region.
Gulf Petrochem’s new terminal will have total capacity of 203,888 cu m with 37 tanks ranging from 1,700 to 11,200 cu m in capacity.
Complying with International safety and operational standards, the new terminal will be able to house petroleum products, such as fuel oil, gas oil, base oil, bitumen, naphtha, among others.
GP Hamriyah Terminal can also be connected to other key terminals in the area. It is also connected to both the inner and outer harbours of Hamriyah Port.
Speaking at the opening ceremony, BM Bansal, Gulf Petrochem Group board member, said, “Our storage terminal business has become an integral and significant business unit for the Group. Complimented by our existing storage facilities in Fujairah, UAE and Pipavav, India, our new terminal in Hamriyah will continue to enable us to service our customers within strategically located storage and trading hubs globally.”
Third - Aegean Marine Petroleum Network has won a new $120 mill credit facility arranged by local UAE banks for its wholly-owned subsidiary, Aegean Oil Terminal Corp.
E Nikolas Tavlarios, company president, commented, "We are pleased with the confidence our UAE banking group has shown in our business and believe their support will help drive our growth plans in the region.
“With this new facility, we have established more favourable terms with lower margin and longer maturity dates than our 2013 Fujairah Credit Facility, further enhancing our financial flexibility.
“Our Fujairah storage facility has been received well in the marketplace and we quickly achieved a high utilisation rate driven by our strong marketing strategy and the valuable support of our local banking group,”he said.
Proceeds from the loan were used to repay the debt currently outstanding on the storage facility of $45.2 mill. The balance is expected to be used to purchase supply, while pursuing Aegean's strategy of selling blended products to generate greater profitability.
The facility was arranged by the United Arab Bank and funded by the United Arab Bank, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, and the National Bank of Oman.