Sadara Chemical inks storage, port services deals

The Sadara Chemical JV of Saudi Aramco and Dow Chemical has entered into two agreements with Jubail Chemical & Storage Services Co. (JCSSC) for the provision of liquid product storage and handling services at the King Fahd Industrial Port (KFIP) in Jubail, Saudi Arabia.

JCSSB is a JV between Saudi Basic Services Co. (SABIC) and Royal Vopak of the Netherlands.

JCSSC has built and will operate the new facilities at Petrochemical Quay 2 (PCQ-2), located in KFIP. The agreements with JCSSC will allow for the storage and export of Sadara's liquid products from Saudi Arabia.

Under the tank storage construction agreement, Sadara will sell to JCSSC a tank farm that has been constructed by Sadara at PCQ-2. The tank farm supplements the port terminal and related port facilities that have been constructed 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, company officials explained.

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 by the end of 2015, with the complex anticipated to be in full operation by the end of 2016.