Port authorities plan to spend SR 3.43 billion on development

Updated 17 June 2013
0

Port authorities plan to spend SR 3.43 billion on development

With traffic continuing to rise at all of the Kingdom's major seaports, the Saudi Ports Authority (SPA) and King Abdul Aziz Port plan to spend SR 3.43 billion ($ 914 million) on port development in the Saudi Arabia.
Among these developments is a SR 615 million ($ 164 million) plan that includes a SR 191.3 million ($ 51 million) power plant to be constructed at King Abdul Aziz Port in Dammam to boost power generation capacity from 50 megawatts to 120 megawatts.
As well, a new container terminal at a cost of SR 172.5 million ($ 46 million) will be built in Dheba Port, with two others to be constructed at King Fahd Industrial Port in Jubail at a cost of SR 142.5 million ($ 38 million), with both due for completion by 2014.
In addition, more than SR 2812.5 million ($ 750 million) is to be invested into the expansion of Dammam’s King Abdul Aziz Port, with SR 2006.25 million ($ 535 million) set aside for container terminal capacity expansion and SR 798.75 million ($ 213 million) for other facilities, following a 10 percent increase in container handling in 2012 compared to 2011 figures.
Commenting on the increase in traffic and container volume across the Kingdom, Sahir Tahlawi, general manager at Jeddah Islamic Port (JIP), said: "Growth at the Red Sea Gateway Terminal in Jeddah accounted for the handling of one million TEU in 2011 and increased to over 1.5 million TEU last year, reflecting the Kingdom's massive growth of import and exports. Overall, the SPA's development plans for all domestic seaports are an indicator that more international companies are becoming interested and doing business with the Kingdom."
He added that in addition to expanding the seaport network and container capacity, the Kingdom has also realized leisure and tourism, as a valuable economic driver and has announced plans to build a SR 101.3 million ($ 27 million) cruise and leisure vessel terminal at Yanbu Commercial Port, also under its key development plan.
As one of the Kingdom’s primary container hubs, the JIP has witnessed increased volumes by more than 25 percent, recording a 5.15 percent in growth of imports and exports in the first half of the year, rising to 3.6 million tons and an average increase of 10.9 percent per annum forecast through 2016.
According to data from the SPA, the Kingdom's ports handled 16,264,525 tons of cargo last month, with the total for 2013 at 75,172,657 tons, excluding oil.


Saudi Aramco to invest in refinery-petrochemical project in east China

Updated 18 October 2018
0

Saudi Aramco to invest in refinery-petrochemical project in east China

  • This is the third such project in China that Saudi Aramco has set its sight on
  • Last month, Saudi Aramco signed a long-term deal with the Zhejiang project’s operator Zhejiang Rongsheng to supply crude oil

ZHOUSHAN, China/SINGAPORE: State oil giant Saudi Aramco signed an agreement on Thursday to invest in a refinery-petrochemical project in eastern China, part of its strategy to expand in downstream operations globally.
The memorandum of understanding between the company and Zhejiang province included plans to invest in a new refinery and co-operate in crude oil supply, storage and trading, according to details released by the Zhoushan government after a signing ceremony in the city south of Shanghai.
Zhejiang Petrochemical, 51 percent owned by textile giant Zhejiang Rongsheng Holding Group, is building a 400,000-barrels-per-day refinery and associated petrochemical facilities that was expected to start operations by the end of this year.
This is the third such project in China that Saudi Aramco has set its sight on as it seeks to lock in long-term outlets for its crude oil and produce fuel and petrochemicals to meet rising demand in Asia and cushion the risk of a slowdown in oil consumption.
Last month, Saudi Aramco signed a long-term deal with the Zhejiang project’s operator Zhejiang Rongsheng to supply crude oil.
The oil giant had not yet finalized the size of its stake in the project and still needed to complete due diligence, Aramco’s Senior Vice President of Downstream, Abdulaziz Al-Judaimi, said on the sidelines of the event.
Saudi Aramco expects to supply 170,000 barrels per day of Saudi crude to the refinery in Zhoushan when it starts operations, he said.
The first crude carrier supplying the refinery should arrive in December or January, depending on when the project starts, he added.
Aramco also owns part of the Fujian refinery-petrochemical plant with Sinopec and Exxon Mobil Corp, and has plans to build a 300,000-bpd refinery with China’s Norinco. It is also in talks with PetroChina to invest in a refinery in Yunnan.