The King Salman Energy Park (SPARK) has completed 60% of its first phase which consists of infrastructure, roads, utilities, and real estate assets established across 14 km
A total of 6 billion Saudi Riyals was invested in the first phase of this mega project, which is set to be completed in 2021. Upon completion, the project will add 22 billion Saudi Riyals annually to the Kingdom’s GDP by 2035, while creating thousands of new highly skilled job opportunities.
Commenting on this milestone, Chairman of the King Salman Energy Park, Dr Mohammed Yahya Al-Qahtani said: “Achieving this feat strongly reflects our commitment to implement this unique project that is designed for the betterment of our community. SPARK will be a new engine fuelling the growth of the energy sector as well as driving the diversification agenda of our economy. As we take huge economic leaps, soon, we will be ready to attract the best talent and create new opportunities for our ambitious youth”.
Al-Qahtani added: “I would like to personally thank all of SPARK’s employees, tenants and contractors for their dedication and commitment to ensuring continued progress by using new technologies and innovative methods to meet deadlines in a safe and effective manner.”
Fifteen major energy companies have already signed agreements to invest in SPARK, and another fifteen companies are currently in the pipeline. It is forecasted that foreign direct investment in SPARK will exceed US$2 billion in the next two years, once these investors finalise the construction of their facilities.
SPARK has also signed an MoU with the global logistics specialists, Hutchinson Ports to create a joint venture company to manage and operate the dry port and logistics zone. Once completed, SPARK’s investors and neighbouring regional hubs will be able to benefit from world class logistics infrastructure and enhanced global reach.
In April of 2019, Schlumberger commenced work on a US$46 million facility which will produce drilling solutions for the regional energy industry, as a result adding 260 jobs to the workforce. Yokogawa, another anchor investor in SPARK, is in the final stages of construction work on its new high-tech equipment centre. The Oilfields Supply Company Saudi (OSC) is also currently building an oil and gas industry user supply base to accelerate the growth of small and medium enterprises by providing ready-to-use factories with the latest specifications, along with a range of integrated services and logistical solutions.
To date, OSC Saudi has completed 10% of its construction and building work, becoming one of the largest investments in SPARK, with a forecasted investment of US$400 million, spanning over 1 million m2. Other investors, including Baker Hughes, Halliburton, Al-Rushaid Group and Sawafi-Borets are in various stages of development, ranging from facilities design to appointing building contractors.
In December 2018, Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense laid the foundational stone for the 50 km2 park. SPARK will contribute to supporting the national economic development process for the Kingdom's Vision 2030.
SPARK is strategically located in the eastern region of the Kingdom between Dammam and Al-Ahsa. In 2019, Saudi Aramco established the ‘Energy City Development Company’ to develop the park’s infrastructure, roads and facilities and to oversee partnerships for operation and management of logistical and residential areas. The park will serve the entire energy sector and the Arabian Gulf, connected by railway to the Gulf Cooperation Council (GCC) countries.
SPARK aims to attract local and international industry investors across five strategic sectors including upstream, downstream, petrochemicals, power and water treatment. Investors will benefit from SPARK’s wide range of services to help them achieve success and sustainability of their projects. SPARK’s readily available industrial project sites offer high-quality infrastructure which include internal road networks, an advanced network of electrical power, water, natural gas, sanitation systems, rainwater drainage and the most modern communication network in the Kingdom.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/21072020/king-salman-energy-park-completes-60-of-phase-one/