(EnergyAsia, November 27 2012, Tuesday) — Saudi Basic Industries Corporation (SABIC) said it has agreed to build a new storage terminal with Dutch oil logistics firm Royal Vopak and to expand a chemical plant with Anglo Dutch major Shell. The companies did not disclose the value of the two separate projects to be built in Saudi Arabia’s industrial eastern city of Jubail.
Vopak said it will take a 25% stake in the Jubail Chemical Storage and Services Company (JCSSC) which will build the terminal at the city’s King Fahd Industrial Port to serve the area’s fast-growing petrochemical and chemical industries.
Expected to start up in early 2015, the project’s 250,000-cubic metre first phase will consist of 40 commodity and specialty chemical storage tanks, and truck handling and ship loading facilities for five berths.
Royal Vopak, the world’s largest independent tank storage service provider, operates 84 terminals with a total capacity of nearly 30 million cubic metres in 31 countries.
Separately, SABIC said it and Shell Chemicals have agreed to expand the capacity of their jointly owned polyols and styrene monomer propylene oxide (SMPO) plants in the Al Jubail industrial zone as well as develop their SADAF joint-venture to other countries.
SABIC said the partners will jointly conduct studies to implement the project which would employ Shell Chemicals’ proprietary polyols and SMPO technologies to produce chemical building blocks for the polyurethanes industry and petrochemicals sector in the Middle East and beyond.
Mohamed Al-Mady, SABIC’s vice chairman and CEO, said:
“We are pleased to be deepening our partnership with Shell. This investment will respond to demands for solutions from our global customer base. These sectors include building & construction, automotive & transportation, furniture & bedding, sports goods, food packaging, cold chain & refrigeration, and home appliances industries. Our polyurethane solutions will offer strength and flexibility, variable rigidity and insulation properties in a wide range of applications.”
Ben van Beurden, Shell Chemicals’ executive vice president, said:
“SABIC ranks among the world’s top petrochemical companies and operates in over 40 countries. We are delighted to expand our successful, long-standing partnership of more than 30 years. The proposed SMPO and polyols plants will help strengthen Shell’s global propylene oxide and polyols manufacturing capacity, boosting our supply to customers worldwide.”