The Saudi Ports Authority (Mawani) has signed a deal with Alba Nova International and Trafalgar in order to set up an integrated bunker station at the King Fahad Industrial Port in partnership with the Ministry of Energy.
The proposed $532 million development is key to Mawani’s ambition to position Saudi Arabia as a logistics hub of choice at the crossroads of three major continents in line with the ambitions of the National Transport and Logistics Strategy (NTLS).
Mawani said in a statement that the facility is similarly crucial in fulfilling the objectives of the Ministry of Energy to raise the kingdom’s share in the regional bunkering market to 10 million tons through increased partnerships with major oil storage companies.
According to the statement, “The operator of the 393,000 sq. m. refueling hub intends to build oil tanks to store, trade, and blend petroleum products over two stages, with each phase seeing new 1.2 million metric-ton-capacity facilities taking shape over 196,000 sq m.”
Based in Yanbu, King Fahad Industrial Port is the Kingdom’s and the Red Sea’s largest trade hub for crude oil, refined petroleum, and petrochemicals.
With a throughput capacity of 500,000 tons and an infrastructure spanning 34 berths and ten terminals, the port is strategically located to serve the East-West global trade routes, Mawani added.
“The overall holding capacity for the pioneering project is expected to hit 2.5 million metric tons on completion. A total of 144 storage units, ranging from diesel tanks, benzene tanks, and heavy fuel oil tanks among others, will be erected at each stage,” as per the statement.