Orpic inaugurates $336mn Muscat Sohar Product Pipeline and Jifnain Terminal

Muscat - 

Orpic Logistics Company on Wednesday officially inaugurated one of its strategic growth projects, the Muscat Sohar Product Pipeline (MSPP) and the main fuel terminal in Jifnain in Seeb.

The company is a joint venture between Orpic and Spanish firm Compañía Logística de Hidrocarburos (CLH).

The project was inaugurated under the auspices of H E Gen Sultan bin Mohammed al Nu’amani, Minister of Royal Office, in the presence of ministers, members of the Board of Directors of Orpic, representatives of the State Council, Majlis A’Shura and other business leaders.

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H E Sultan bin Salim al Habsi, deputy chairman of the Board of Governors of the Central Bank of Oman and deputy chairman of Orpic Board of Directors said, “We are proud to witness the inauguration of one of the three important strategic growth projects undertaken by Orpic. The project comes in response to the strategic objectives set by the government for developing oil products logistics solutions in the sultanate and to meet the rapidly growing demand for fuel.”

He added that the US$336mn project will help to deliver more than 50 per cent of Oman’s fuel via the state-of-the-art storage facility in Jifnain. “In addition to meeting the domestic demand, this project helps to reduce pollution by reducing truck movements in Muscat by 70 per cent.”

Ahmed Saleh al Jahdhami, CEO, Orpic hailed the pipeline and the terminal project. “The project offers social, economic and environmental benefits, including improved road safety, efficient fuel supply, and reduced pollution. On the in-country value (ICV) front, MSPP has contributed US$149mn to Omani local purchases and SMEs, representing 44 per cent of the total project cost.”

He said that the Jifnain Terminal will boost fuel security in Oman. “There are direct pumping pipes from Jifnain Terminal to the new Muscat airport which will reduce traffic congestion.”

The chief executive officer of CLH said, “The project is a landmark in the history of our company and we believe it will open the door to new opportunities.”

MSPP and Jifnain Terminal feature a 290km pipeline connected by three pipeline network including a 10-inch multi-product pipeline of 45km length from Mina al Fahal Refinery to the terminal. The second pipeline is an 18-inch multi-product pipeline of 220km from Sohar Refinery to the terminal.

The third one is a 10-inch dedicated pipeline for jet fuel of 25km length from the terminal to the new Muscat airport. This pipeline helps to pump jet fuel directly from the terminal to the airport without requiring tanker trucks.

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The new terminal is equipped with 16 bays with a capacity to load up to 700 trucks daily for transportation across stations. Furthermore, the new terminal is supplied by two multi-product and bi-directional pipelines connected to Orpic’s Sohar and Muscat refineries.

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