Al Falih: the project supports the vital infrastructure of the supply chain in the kingdom

Al Falih: the project supports the vital infrastructure of the supply chain in the kingdom

Industrial Energy City to be ready by 2021

August 2017

The first phase of the proposed Industrial Energy City project in the Eastern Province of Saudi Arabia is expected to be completed in 2021. The energy city will spread over an area of approximately 50 sq km with its first phase covering approximately 12 sq km.

The planned project will provide thousands of direct and indirect jobs and contribute SR22.5 billion ($6 billion) to the nation›s economy, said Engineer Khalid bin Abdulaziz Al Falih, Minister of Energy, Industry and Mineral Resources.

Al Falih, who is also the chairman of Saudi Aramco and of Saudi Industrial Property Authority (Modon), said the project aims at localising industries supporting the energy sector and cover industries related to oil exploration, production and refining, petrochemicals, conventional electric power, water production and treatment.

He pointed out that the decision to establish a new industrial city for energy is in line with the kingdom›s vision 2030 and supports the vital infrastructure of the supply chain in the kingdom.

The management of the proposed Saudi Industrial Energy City will be carried out jointly by Saudi Aramco and Saudi Industrial Cities and Technology Estates (Modon), said Khalid Al Salem, general manager, Modon.

Modon will provide the project with all the necessary requirements for the attractive investment environment, he said.

He added that Modon has already started preparing plans and programmes in cooperation with Saudi Aramco to develop and operate the city.

The Saudi Cabinet recently approved the establishment of the city in the Eastern Province and the allocation of land for the same.

The cabinet also approved Saudi Aramco’s offer to establish a company to develop the infrastructure of the Industrial Energy City and manage its fixed assets and to establish a company to operate, manage and maintain the city.

With full development, the industrial energy city is expected to achieve a number of strategic objectives, the most important of which is to support and increase the security of energy supplies, reduce the cost of supporting products and services related to the energy sector, and respond quickly to the needs of Saudi Aramco.

The Industrial Energy City will host manufacturing and service activities related to the target sectors such as drilling services, drilling rigs, liquid treatment equipment, exploration and production services, pipe manufacturing, electrical equipment, tanks, valves and pumps.

Saudi Aramco has conducted several studies and surveys with major and global suppliers of the company. These efforts have identified a number of key components to create an integrated and sustainable work environment that matches the best manufacturing centres in the world.

These include the provision of advanced infrastructure, logistics services including an integrated dry port, incentives to attract investments, the empowerment of small and medium enterprises, the provision of specialised training institutes in the industry, a comprehensive service centre, residential complexes and commercial activities.

In order to increase the attractiveness of the investment, a strategic location between Dammam and Al-Ahsa was chosen for the city. The site was also selected so it can be integrated with the third industrial city in Dammam and for its proximity to power, water and logistics facilities.

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