31/12/2014 07:39 AST
Oman Gas Company, the Sultanate’s gas transportation flagship, has kicked off plans for the construction of a major oil pipeline that will link the nation’s crude oil network with a mammoth crude storage terminal envisaged at Ras Markaz on the country’s southeastern coast.
Yesterday, the wholly-owned government gas transportation utility floated a tender inviting qualified companies to bid for its contract to survey the route of the pipeline project. The 42-inch pipeline is proposed to run from Nahada in central Oman to the Ras Markaz Crude Oil Park near Duqm in Wusta Governorate. Bids are due in by January 20, 2015.
The strategically significant crude storage terminal is being developed by The Oman Tank Terminal Company LLC (OTTCO), a joint venture between the wholly-owned government energy investment vehicle Oman Oil Company (90 per cent) and its downstream investment subsidiary Takamul Investment Company SAOC (10 per cent).
At full capacity, the terminal will hold around 200 million barrels of crude, effectively making it one of the largest oil storage hubs in the world. Additionally, the facility will serve as an alternative to the Sultanate’s only crude export terminal at Mina al Fahal in Muscat.
Last year, OGC — which operates and manages the nation’s roughly 2,500 km gas pipeline network — said it had completed a ‘concept study’ of the Nahada — Ras Markaz oil pipeline project.
Provisional plans drawn up by authorities envisage a 130 km pipeline that connects the Main Oil Line at Nahada with Saih Nihayda. Another 230 km pipeline then channels the crude from Saih Nihayda to Ras Markaz. Further linkages between the Ras Markaz terminal and a refinery under development at Duqm Special Economic Zone, some 70 km south of Ras Markaz, are also envisaged.
The Ministry of Oil and Gas is an important stakeholder in the Ras Markaz Crude Oil Park, as well as in the associated pipeline infrastructure and export terminal. In recent comments to the Observer, Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, said the project’s overall implementation is closely tied to the development of the Duqm SEZ.
“It’s work in progress! The development of Ras Markaz and the Duqm hub essentially go hand in hand. When Duqm kicks off, it will accelerate the development of Ras Markaz. I also understand that interest from the market is encouraging. As exporters, we have interest in Ras Markaz and would like to use the facilities when built, as do many others.”
According to Isam bin Saud al Zadjali, CEO — Oman Oil Company, development of the crude oil storage park is being carefully progressed in sync with other strategic initiatives envisioned at the Duqm SEZ.
“Ras Markaz is part of a portfolio of 3-4 projects (being handled by Oman Oil Company at Duqm). Fundamental to these projects is Duqm Refinery. What we’re doing as a company right now is to look at the schedule of these projects to make sure the timing of completion is ideal.”
Elaborating on the Ras Markaz venture, Al Zadjali stated: “Right now we’re moving ahead. We’re beyond the study phase, and will be going to go into the FEED, engineering design, and so on. These would however require some time. For us at Oman Oil Company, the goal is to make sure that all of these projects are delivered at a time that the government deems appropriate.”
Oman Daily Observer
Please wait...
