Abu Dhabi Ports announced on Tuesday that it has signed a strategic agreement with Saudi Arabia-based Arabian Chemical Terminals (ACT) to develop the UAE's first greenfield commercial tank farm at the Khalifa Port.

The bulk liquid storage terminal project, which is targeted at existing and new oil and gas customers, will enhance Abu Dhabi Ports' capability to handle liquid bulk products and gases, it said in a statement.

The statement didn't disclose the project value but said the tank farm would be developed on a 50,000-square metre (sqm) land plot adjacent to a 16-metre deep-water quay access, with option for an additional 150,000 sqm of land.

It also said the project would be completed in two phases with the first stage slated for commissioning in the second half of 2022 entailing the deployment of 44 storage tanks sized 1,250 and 3,000 tonnes each, while the second phase would commence following expansion of the surrounding area and will consist of a number of larger industrial storage tanks and spheres.

The agreement was signed by Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports and Rakan Alireza, Managing Director of Arabian Chemical Terminals and Deputy Managing Director of Reza Investment Company. Al Shamisi said in the statement that the project would support Abu Dhabi Ports' diversification strategy.

ACT managing director and Deputy Managing Director of Reza Investment Company Rakan Alireza pointed out that ACT had pioneered the development of first commercial tank farm in Saudi Arabia.

He said the new liquid terminal would "prosper" as a result of its strategic location between Abu Dhabi and Dubai industries, and "by Khalifa Port's multi-modal connectivity with access to the sea and UAE's extensive road and future GCC railway network."

Beyond the development of the bulk liquid terminal, ACT is exploring different opportunities to expand its service offering at Khalifa Port and its surrounding environment, according to the press statement.

This expansion includes the facilitation of fuel bunker services for port customers, drumming and ISO filling services, the development of an independent laboratory, realisation of MARPOL slops reception facilities, ADR qualified trucking and distribution services, as well as offering stevedoring services that will support other liquid product custody transfers.

The statement further noted that ACT is considering new avenues to support KIZAD and its clients, such as providing them with feedstock offerings or assistance in selling their yields, in addition to cooperating with the industrial zone to develop warehouses for both dry and liquid goods.

(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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