- Transportation & Logistics
ENOC expands terminal operations in Saudi Arabia
ENOC Group, a wholly owned company of the Government of Dubai and a leading integrated global oil and gas player operating across the energy sector value chain, has further expanded its terminal operations in Saudi Arabia, with the construction of a vital pipeline and tank infrastructure to transport and store petrochemicals in Saudi Arabia’s Western Province.
The infrastructure development between Horizon Terminals Limited (HTL), ENOC’s terminals arm, and Rotary Arabia, the front-end contractors for the project and one of the premier EPC contractors in Saudi Arabia, saw the construction of four new pipelines from Farabi Petrochemicals’ Yanbu facility on the Red Sea coast to storage tanks at Arabtank Terminal Limited (ATTL), associated pumps lines and export lines. The project also included highly automated facilities in line with Horizon Terminals’ vision. About 60-70% of the Yanbu facility will produce linear alkyl benzene (LAB) and normal paraffins (NPN). The remaining 30-40% will be derivative products.
Chemical capacity within the Gulf Cooperation Council (GCC) is projected to increase by 33.6% in the next decade, to 231.8 million tonnes, driven by refining expansion and chemical integration. ENOC’s contribution to building robust infrastructure in Saudi Arabia will propel the production and manufacturing of petrochemicals in the Kingdom.
Arab Tank Terminal Limited (ATTL), which is Horizon Terminals’ Saudi-based terminal, has a petroleum and chemical storage capacity of 288,100 cubic metre (CBM) in 26 storage tanks. Four tanks have been upgraded. Two additional pipelines were also constructed from ATTL to Berth 21 at Port of King Fahad Yanbu, as Farabi Petrochemicals aims to realise its vision of becoming the world leader in LAB production.
“The GCC chemical industry today is predominantly focused on petrochemicals which make up 72% of its total production, with Saudi Arabia being the leading producer in the region, accounting for 68.2% of total chemical output. Our expansion into the Kingdom comes at a time when the regional market is poised to step up overseas production capacity by 7.6%. This strategic alliance with Rotary Arabia to boost transportation capacity also reflects ENOC’s regional growth plans in strengthening our terminalling footprint, while contributing to the Kingdom’s overall energy sector growth,” said Saif Humaid Al Falasi, Group CEO, ENOC.
The GCC comprises all Arab states of the Persian Gulf – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – except for Iraq.
Farabi Petrochemicals currently supplies to the domestic market and benefits from the Port of King Fahad Yanbu infrastructure to export NPN and LAB to the GCC, Europe and Asia. The new pipelines from its Yanbu facility will enable faster and more efficient transportation of Farabi’s petrochemical products, enabling growth due to increased export capacity of these products.
With 10 terminals in Morocco, Djibouti, Saudi Arabia, the UAE and Singapore, Horizon Terminals’ facilities are strategically in key markets across the Mediterranean and the Middle East. Horizon Terminals is a legacy business of ENOC, set up in 2003, and has a long history of establishing bulk liquid terminalling across regional markets. Horizon Terminals is a leading player in the Far East markets.