Petrochem to Add Second U.A.E. Terminal

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Petrochem to Add Second U.A.E. Terminal
Jebel Ali Port in Dubai, United Arab Emirates. © Novikov Aleksey

Petrochem Middle East will invest $80 million to $90 million to develop its second chemical terminal within Jebel Ali Port, in the United Arab Emirates, under a 30-year lease agreement announced with DP World. Petrochem distributes chemicals used in the lubricants industry, including alcohols, glycols, esters and ethanolamines.

According to the July 7 announcement, the new 400,000 square foot chemical distribution terminal, which will be adjacent to the port’s dedicated chemical handling berth, is scheduled for completion by the third quarter of 2023. The terminal will provide chemical raw materials in large volumes to traditional and new industries coming into the U.A.E. Petrochem plans to use the facility for contract manufacturing and also provide chemical distillation and manufacturing and blending facilities with an office block.

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The companies that at its peak capacity, the terminal will have a capacity of approximately 40,000 cubic meters (36,000 metric tons) for storage of various products and will also be fitted with distillation and processing units. It is expected to contribute annual upwards of $200 million of new trade to and from Dubai.

For the expansion project, Petrochem proposes to build 24-40 bulk chemicals storage tanks of different size large and small, and some stainless-steel tanks. The expansion will also include a day tank farm, tanker and truck loading facility, nitrogen generation plant and automatic drum filling machines. Some of the tanks will feature chillers and condensers.

According to Petrochem’s website, examples of the products it distributes that are used in lubricants include the alcohol n-propanol, propylene glycol, methyl methacrylate and ethanolamines. N-propanol can be used to make esters used to produce lubricants. Propylene glycol is a common ingredient in resins, cosmetics, paints, detergents and antifreeze. It can also be used for production of polyglycols for use in hydraulic and brake systems to provide lubricity. Methyl methacrylate can be used to make polyalkl methacrylates, which can serve as the chemical foundation for products such as viscosity index improvers, pour point depressants and synthetic base stocks. Ethanolamines are chemical intermediates that are widely used in production of lubricant additives.

DP World, UAE Region’s trade and logistics hub including Jebel Ali Port and Jebel Ali Free Zone – known as Jafza – has provided an ecosystem for years to the region’s chemicals’ trade and logistics. Petrochem Middle East has been a part of Jafza since its inception in 1995. 

Petrochem Middle East CEO Yogesh Mehta said in a news release that the company’s existing Jebel Ali terminal has helped strengthen the portfolios of its clients, while helping the company offer prompt logistics services and specially blended quality products. “As quality is our key area of concern, our terminal adheres to the strictest of health and safety norms and is also environment friendly,” Mehta said. “We owe part of our success to Jafza as it has helped us position ourselves as the largest independent chemical distributor in the Middle East and the 11th largest in the world. We are certain that the agreement will bring about a positive shift in the industry that is known for its rapidly changing regulations, new introductions of technology disruptions and evolving customer demands.”

DP World refers to itself as a global trade enabler, operating ports and terminals, industrial parks, logistics and economic zones, maritime services and marinas at 150 operations around the world.

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