The project will increase the storage capacity for diesel, petrol and connect the current storage facilities in Sohar and Mina al Fahal to cope with ever growing demands, Orpic said in a press release issued on Monday.
Musab al Mahruqi, CEO of Orpic, said that the new storage and loading station will reduce the load on the current Mina al Fahal station, which is considered as the main station for loading and distributing fuel in Oman.
He said, “70 per cent of Oman fuel is being distributed from Mina al Fahal, the rest from Sohar refineries and Raysut port. Upon completion of the project, the new station will contribute 50 per cent of the expected local consumption in the sultanate to cope with the growing demands while keeping the current stations in operation.”
“With this significant investment, we will remove the need to ship refined products from Sohar to Muscat and then truck them through the city, as we do today. Not only will it bring a new level of efficiency and lower costs to our business, it will reduce the number of fuel tanker trips in and around Muscat,” added Mahruqi.
He further said, “This is just one of the ways in which we are improving all areas of our environmental impact.”
Orpic has signed a memorandum of understanding (MoU) with Spanish Compañia Logística de Hidrocarburos (CLH) to benefit from their experience in designing, construction and operating the project.
The project will be implemented in three phases:
- Phase 1: A pipeline connecting the Muscat International Airport and the Mina al Fahal Refinery by the main storage facility.
- Phase 2: A pipeline that connects the Mina al Fahal Refinery and the Sohar Refinery as well as the construction of an intermediate storage facility in Muscat.
- Phase 3: The construction of an additional strategic storage facility which will provide strategic reserves for Oman, allowing 30 days of fuel stocks for the nation.
In addition, the new asset could potentially incorporate the existing logistic infrastructure in order to increase the overall efficiency of the distribution of oil products within Oman.