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The King Salman Energy Park (SPARK) project is set to contribute SAR 22.5 billion ($6 billion) annually to the Kingdom’s gross domestic product (GDP) when it is fully complete in 2035, said Saudi Aramco, the main anchor tenant of the park.
SPARK will help localize over 300 new industrial and service facilities, and create a global industrial hub for energy-related manufacturing services.
Facilities offered include a dry port, shared services, a commercial and residential area, and highly specialized training centers.
The project will create tens of thousands of direct and indirect jobs for local communities, the statement noted.
"SPARK is a response to Vision 2030 requirements, pertaining to enhancing economic diversification, supporting the private sector, and pressing ahead with efforts to develop the energy sector," Saudi energy minister Khalid A Al-Falih, who also serves as chairman of Aramco’s board of directors, said in the statement.
Location
The megaproject will be constructed between the Eastern Province cities of Dammam and Al-Hasa, allowing access to a large pool of local manpower, Aramco said.
The location will also enable companies established in the park to supply the whole region’s demand for energy goods and services under five focus areas, including upstream, downstream, petrochemicals, power, and water.
Construction
Site preparation for SPARK’s first phase started in September 2017, and the architectural design for the whole project is now 20 percent complete.
Land plots are expected to be released to early tenants in Q3 this year, while construction work on the entire phase one will be completed in 2021.
Work on developing the infrastructure and other facilities will begin in the second half of 2018.
The total area of the energy park is planned to be more than 50 square kilometers and will be developed in three phases, expected to be completed by 2035.
Tenants
Global energy companies such as Schlumberger, Baker Hughes-GE, and Oilfields Supply Company Saudi have already signed memorandums of understanding with Aramco signaling their intention to locate at the park.
Schlumberger will develop an industrial manufacturing center over 500,000 square meters of land allocated for energy-related industries as it expands its manufacturing base within the Kingdom.
The first phase, which is planned to be completed in Q2 2018, will bring Schlumberger land rig manufacturing to the Kingdom, the profile said.
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