DP World UAE Region and Petrochem Middle East have signed a new deal to develop a chemical terminal in Quay 7 at the Port of Jebel Ali.
Petrochem Middle East, the largest chemical distributor in the Middle East and Africa, will invest between $80 million to $90 million to develop a chemical terminal on Quay 7, adjacent to the dedicated chemical handling berth within Jebel Ali Free Zone (Jafza).
In a statement, Petrochem Middle East said it signed a 30-year lease agreement that expands its business in the region.
The facility is expected to be completed by the 3Q 2023 and will provide chemical raw materials in large volumes to traditional and new industries coming in the UAE.
With this project, Petrochem proposes to build 24-30 bulk chemicals storage tanks of different size large and small and some stainless-steel tanks with an overall capacity of 40,000m3.
It also includes a day tank farm, tanker and truck loading facility, nitrogen generation plant and automatic drum filling machines.
Petrochem will utilise the facility for contract manufacturing and also provide chemical distillation and manufacturing and blending facilities with an office block.
In its peak capacity, the terminal will have a capacity of approximately 40,000 Coal Bed Methane (CBM) for storage of various products and will also be fitted with distillation and processing units.
It is likely to contribute annually to upwards of $200 million of new trade to and from Dubai.
Abdulla Bin Damithan, CEO & Managing Director, DP World UAE Region and Jafza, said, “The UAE and the Middle East region for years have been recognised as a thriving hub for the petrochemical industry.
“Despite the highly unstable market due to the pandemic, over the course of 2020, the Gulf Cooperation Council’s (GCC) chemical output expanded by 1.5% compared to a global decline of 2.6%.
“Our partnership with Petrochem Middle East and our long-standing relationship with the company is further proof of the burgeoning sector.”
Yogesh Mehta, CEO, Petrochem Middle East, added, “Since our inception in Jafza, we have had the privilege of having an ideal business environment that has truly added to our growth figures.”
