The official Saudi Industrial Property Authority (Modon) has granted a license to Saudi Aramco for the development of the King Salman Energy City (Spark).
This is the first license to be issued for the energy city, which was previously known as Abqaiq Energy City, Modon said in a statement.
Spark will be constructed in Abqaiq between the Eastern Province cities of Dammam and Al-Hasa.
Modon and Aramco had previously signed a memorandum of understanding (MoU) for the project, which is aligned with Saudi Vision 2030.
The total area of the energy park is planned to be more than 50 square kilometres and will be developed in three phases, expected to be completed by 2035.
According to Aramco’s website, site preparation for phase 1 of the project started in September last year, and the architectural design for the whole project is now about 25 per cent complete.
Construction of phase 1 will be completed in 2021. Construction work for infrastructure and other facilities are thought to start in the second half of this year.
Spark’s infrastructure will comprise logistics facilities, a dry port, shared services, a commercial and residential area, and training centres.
Goods and services produced out of Spark will cater to the full energy spectrum: upstream, downstream, petrochemicals, power and water.
Saudi Aramco will be the main anchor tenant in the park that is expected to be an industrial hub for energy-related manufacturing services. Land will be released to early tenants this quarter.
Major energy services firms Schlumberger, Baker Hughes and Oilfields Supply Company Saudi, have signed MoUs with Aramco for setting up potential units in the park.
Spark is also expected to create tens of thousands of direct and indirect jobs for locals, boosting the national economy.
Once wholly developed by 2035, the complex is estimate to contribute $6bn annually to the kingdom’s GDP, as well as help localise more than 300 new industrial and services facilities.
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