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State-run oil giant Saudi Aramco said the first phase of the new Energy Industrial City, will be completed in 2021 on a total area of nearly 12 square kilometers.
The Saudi Industrial Property Authority (Modon) has started to map out the plans and programs required to develop and operate the city, Aramco said in a statement on Saturday.
The industrial city is expected to contribute almost SAR 22.5 billion to the Kingdom’s gross domestic product (GDP) annually and provide thousands of jobs, said Khalid Al-Falih, minister of energy and chairman of Saudi Aramco.
The project will also enhance Aramco's operations, cut costs of products, and meet the needs of the company’s operations, the statement added.
It will also provide drilling, exploration and production services and pipe manufacturing.
The city, to be located between Dammam and Ahsa, will spread on a total area of 50 square kilometers.
Last week, Saudi Arabia’s cabinet agreed to allocate 50 square kilometers of Saudi Aramco’s reservations to build a new energy industrial city in the Eastern Province.
It also approved the oil giant’s offer to set up two firms to develop and operate the city.
Aramco in March said it expects the new industrial city to cost SAR 16.5 billion to build.
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