UAE-based leading integrated global oil and gas company, ENOC Group, in collaboration with Rotary Arabia, one of Saudi Arabia’s leading engineering, procurement, and construction (EPC) contractors, has completed the construction of the vital pipeline and tank infrastructure to transport and store petrochemicals in the Western Province of the Kingdom.
The infrastructure development between UAE’s Horizon Terminals Limited (HTL), ENOC’s terminals arm, and Rotary Arabia, the project’s front-end contractors, built four new pipelines connecting Middle East’s Farabi Petrochemicals’ Yanbu facility on the Red Sea coast to storage tanks at Arabtank Terminal Limited (ATTL), as well as associated pumps lines and export lines.
In keeping with HTL’s vision, the project included highly automated facilities. The production of linear alkyl benzene (LAB) and normal paraffins (NPN) accounts for 60-70 percent of the Yanbu facility’s output, with the remaining 30-40 percent of products being derivatives.
ENOC’s contribution to building robust infrastructure in Saudi Arabia will propel the production and manufacturing of petrochemicals in the Kingdom, with GCC chemical capacity projected to increase by 33.6 percent in the next decade, to 231.8 million tonnes, led by refining expansion and chemical integration.
Horizon Terminals’ Saudi terminal, Arab Tank Terminal Limited (ATTL), has a petroleum and chemical storage capacity of 288,100 cubic meters (CBM) in 26 storage tanks, four of which have been upgraded. As part of Farabi Petrochemicals’ vision to become the world leader in LAB development, two additional pipelines were built from ATTL to Berth 21 at the Port of King Fahad Yanbu.
Mr. Saif Humaid Al Falasi, Group Chief executive Officer, ENOC, remarked that “the GCC chemical industry today is predominantly focused on petrochemicals which make up 72 percent of its total production, with Saudi Arabia being the leading producer in the region, accounting for 68.2 percent of total chemical output.”
Farabi Petrochemicals currently supplies the domestic market and uses the facilities of the Port of King Fahad Yanbu to export NPN and LAB to the GCC, Europe, and Asia.
The new pipelines from Farabi’s Yanbu facility would allow for quicker and more reliable transportation of the company’s petrochemical products enabling growth due to increased export capacity of these products domestically and internationally.
“Our expansion into the Kingdom comes at a time when the regional market is poised to step up overseas production capacity by 7.6 percent. 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,” Mr. Al Falasi added.
HTL facilities are strategically positioned in key markets throughout the Mediterranean and the Middle East, with ten terminals in Morocco, Djibouti, Saudi Arabia, the UAE, and Singapore.
ENOC’s Horizon Terminals is a legacy business established in 2003, has a long history of developing bulk liquid terminalling in regional markets, and is a market leader in the Far East.