SABIC unit inks deal for $400m port project

Saud's JCSSC awards construction contract for shipping terminal to Chinese company
SABIC unit inks deal for $400m port project
(Photo for illustrative purposes only)
By Andy Sambidge
Fri 16 Nov 2012 11:19 AM

Saudi Basic Industries Corporation (SABIC) has said that one of its units has awarded contracts for a new storage, handling and shipping terminal at King Fahd Industrial Port in Jubail.

It said Jubail Chemicals Storage and Services Company (JCSSC) has awarded engineering, procurement and construction contracts to China National Chemical Engineering Corporation (CNCEC).

The total investment is estimated to be $400m, the company said in a statement.

"The project will enable the continued growth of the petrochemical and downstream industries in Saudi Arabia," it added

JCSSC is a joint venture in which SABIC holds 75 percent and Vopak 25 percent.

The plan is to finance the project from the parties' own resources as well as through external funds, the statement said.

Once commissioned in early 2015, the storage capacity of the terminal will be approximately 250,000 cubic metres.

The first phase will consist of around 40 commodity and specialty chemical storage tanks, complete with truck handling and ship loading facilities for five berths.

The statement added: "The investment in this industrial terminal will provide the petrochemical industry in Jubail with a critically important export facility, designed to the highest safety standards, and will enable the continued growth of the petrochemical and downstream industries in one of the largest petrochemical production locations in the world."

SABIC, the world's biggest petrochemicals group by market value, posted a 23 percent slump in third-quarter net profit, citing lower product pricing for the decline.

The chemicals, metals and fertilisers conglomerate earned net income of SR6.3bn ($1.68bn) in the three months ended September 30, compared with a record profit of SR8.2bn a year ago.

Despite the decline, the performance beat analysts' forecasts. Nine analysts polled by Reuters had forecast on average that Saudi Arabia's largest listed company would earn SR6.01bn in the quarter.

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