Dubai, Asharq Al-Awsat- Horizon Terminals Limited (HTL) have authorised a $50 million expansion to build a petroleum terminal alongside the existing chemical storage facility in the Kingdom. Arabtank Terminals is managed by Horizon Terminals Ltd, a member of the ENOC Group.
Hussain Sultan, ENOC Group Chief Executive and Board Member said: “This is an exciting development and, along with the Horizon Djibouti Terminal, further strengthens Horizon’s hold on the important Red Sea trade routes. Since ENOC’s initial investment in Arabtank in 2002, it has always been the intention to provide petroleum storage, blending and handling facilities at the site.”
The Pipeline connection to the Aramco/Mobil refinery, SAMREF, and existing jetties will form part of the work to be undertaken by Belleli Energy who has been awarded the Design & Build Contract for the entire facility.
“Arabtank is the Kingdom’s first independent storage facility and has been granted ‘bonded storage status’, which is another first,” said Yusr Sultan, Horizons CEO, adding: “Along with its strategic location, part way besides the Red Sea, Arabtank is perfect for either contango cargoes or consolidation/ break bulk operations.”
The new facility will consist of 252,000m3 of storage capacity in 10 tanks designed to handle ‘clean’ products that include mogas, naphtha and mid-distillates.
Yusr Sultan concluded: “Based on current predictions, the terminal should be ready to receive its first ship late in 2007 and that customer commitment for the entire capacity has already been obtained for the first three years of operation.”
Construction of the new facility is expected to start late August this year once detailed engineering has been completed and will be managed under the umbrella of Group E&C utilising existing in-Kingdom resources for the day to day site management.