Salalah: On Monday, the global integrated energy group, OQ, commemorated the commencement of the strategic fuel reserve project in the Dhofar Governorate, signifying an investment exceeding OMR47 million (converted to $124 million).
The event took place under the esteemed patronage of HH Sayyid Marwan bin Turki Al Said, the Governor of Dhofar, and was graced by a multitude of officials and dignitaries from the region.
The strategic fuel storage facility is designed to augment the local fuel supply in Dhofar and bolster the region's preparedness for unforeseen circumstances by housing critical petroleum derivatives, including MOGAS-91, MOGAS-95, Gas Oil, and jet fuel. With a capacity surpassing 110,000 cubic metres, this facility is meticulously crafted to secure a 30-day fuel supply for Dhofar, thereby fortifying the governorate's resilience against potential energy crises.
This project represents a pivotal component of OQ's comprehensive strategy to cater to the nation's petroleum product demands, in harmony with the escalating population and the surge in commercial and investment activities.
During the ceremony, HH Sayyid Marwan bin Turki Al Said, the Governor of Dhofar, expressed his appreciation for the project, stating, "This endeavor is the culmination of collective efforts across various entities within the Sultanate of Oman, spearheaded by the Ministry of Energy and Minerals and OQ Group. It is aimed at enhancing the infrastructure for sustainable energy development, particularly in the Dhofar Governorate and the Sultanate of Oman at large. This investment is confidentially expected to significantly contribute to the sustainable economic development of the governorate and address various needs, including during emergencies."
Eng. Salim Nasser Al Aufi, the Minister of Energy and Minerals, underscored the significance of the strategic fuel reserve project in Dhofar, stating, "The groundbreaking of the strategic fuel reserve project in Dhofar marks a significant milestone in reinforcing Oman's strategic fuel reserves, ensuring the availability of essential products, and securing supplies during emergencies. This development is of paramount importance in guaranteeing the fulfillment of our petroleum product needs."
He further underscored that a comparable strategic fuel reserve project is poised to commence shortly in the Musandam Governorate, boasting a planned capacity of 14,536 cubic meters. Upon its completion, this endeavor will significantly augment the nation's aggregate fuel storage capacity, encompassing critical facilities such as the 160,000 cubic meter Jifnain station in Muscat Governorate, the 19,700 cubic meter Suhar station in North Al Batinah Governorate, and the 37,000 cubic meter Raysut station.
During the ceremony, Ashraf Hamed Al Mamari, the Group CEO of OQ, articulated: "The strategic fuel storage facility, with a capacity of 110,000 cubic meters, represents another significant milestone in OQ's investments within the Dhofar Governorate, in harmony with our existing projects, including liquefied petroleum gas (LPG), ammonia, methanol plants, and gas pipelines."
He elaborated that the initiation of the strategic fuel reserve project in Dhofar was undertaken in response to the directives of the Omani government, represented by the Ministry of Energy and Minerals, underscoring its commitment to ensuring the uninterrupted supply of petroleum products throughout the Sultanate.
He further noted that all facets related to the project's commencement, including engineering contracts and land usufruct agreements within the Salalah Free Zone, have been successfully concluded.
Al Mamari emphasized OQ's dedication to securing the supply of petroleum derivatives for Oman, boasting a total refining capacity of 530,000 barrels per day. This includes the production capacity of the Duqm Refinery at 230,000 barrels per day, the Mina Al Fahal Refinery at 116,000 barrels per day, and the Suhar Refinery at 198,000 barrels per day.
The project is comprised of three principal components: a fuel reserve facility situated within the free zone, a pipeline linking the pumping station at Salalah Port to the fuel storage tanks within the free zone, and the expansion of the current pumps at Salalah Port. Furthermore, the construction of a new station in Salalah will be connected to the existing Raysut station.
The construction of the reserve facility is scheduled to take place on a plot of land measuring 150,000 square meters. This phase is anticipated to last for three years, during which time it will encompass a comprehensive range of activities including engineering works, procurement, and construction. The facility is designed to include a variety of essential components such as tanks, a warehouse, a control room, an administration building, a maintenance workshop, a pump area, a tanker loading zone, firefighting and safety facilities, and additional supplementary elements. Special attention has been given to the facility's design to accommodate future expansion and to enhance its storage capacity.
OQ is committed to the continuous production of petroleum derivatives, which are crucial for the sustenance of Oman's industrial sector. By the end of 2023, OQ Refineries and Petroleum Industries have achieved significant production milestones, producing over 15.7 million barrels of MOGAS-91, 11 million barrels of MOGAS-95, 32.4 million barrels of gas oil, 9.8 million barrels of jet fuel, and 7.8 million barrels of LPG.
