GulfBase Live Support
In anticipation of the significant growth in petroleum trading in the GCC region, as well as growing demand for bunker services, Singapore-based Trescorp is to launch a new 45-hectare terminal in SOHAR Port with an investment of $600 million. The new facility will feature six deep-water berths, with 25 metre drafts, one of them capable of receiving VLCC oil tankers of up to 320,000dwt — so-called supertankers. The new terminal will occupy space in SOHAR Port South, a recently announced land reclamation project designed to create more space for industry at the fast growing Omani hub.
In its first phase, the terminal will be equipped to receive, store and blend crude oil, fuel oil and diesel. Expansion plans for phase two include gasoline blending, jet fuel, asphalt and a lube oil blending plant. Trescorp selected the location in SOHAR not just for its excellent deep-water access. The strategic location of SOHAR Port, outside the Strait of Hormuz but close to the Gulf states and the Indian subcontinent was also a key factor in the final decision. Furthermore Trescorp, like many overseas investors looking at the region, saw the long-term stability and neutrality of Oman as the safest haven for foreign direct investment in the Middle East.
Construction of phase-one will commence next year, with an initial storage capacity of 600,000 m3, while future expansion plans will take the total storage capacity up to 1.8 million m3. Construction of the facilities will be privately funded with initial investments for phase one estimated at $187 million. Operations are set to commence by 2020.
As well as planned bunker services from Trescorp, SOHAR Port is currently in advanced licensing negotiations with two other bunker service providers following a recent call for tender.
Hamood al Hashmi, Chairman of Trescorp, said, “The forecasts for the growth of petroleum trading in the Gulf area are far greater than the available storage capacity, which is still relatively small compared to combined storage at Port of Singapore and Johor Port that totals around 20 million m3.
Our world-class, dedicated marine facilities at the new terminal will ensure shorter turnaround times for vessels and faster re-exports, greatly benefitting our trading partners. Our blending capabilities will also increase the value of products stored in the terminal. Refined products from SOHAR will be traded and exported around the world to meet projected demand growth in the emerging economies of the Indian subcontinent, East Africa, China and the rest of Asia.” Five hectares of the new Trescorp development are allocated for the development of a Lubrication Park that will blend various grades of lubricating oil products, including marine grade lubricants. Supply of the products will include bulk delivery using lube barges to tankers bunkering in SOHAR Port. Road tanker access to the new facility is also planned.
Mark Geilenkirchen, SOHAR CEO, summed up the background to the new project: “The availability of new land in the Port thanks to our reclamation works make the crude and fuel terminal technically feasible.
The commercial viability is to leverage existing petroleum trading infrastructures in Dubai, potentially adding offshore floating storage facilities in our new anchorage area.” He continued: “There is enormous potential for the growth of oil trading and storage activities in the Gulf and we are delighted to be able to work with Trescorp to add a new level of service to our world-class facilities here in SOHAR.”
Oman Daily Observer
The Islamic Corporation for the Development of the Private Sector (ICD, Aa3 stable) benefits from a robust capital position and strong liquidity, although its weak asset quality remains a challenge,
Governor of the Saudi Customs General Authority Ahmad bin Abdulaziz Al-Hakbani visited Jadidat Arrar Customs Port on Sunday (Aug. 4, 2018) to oversee preparations taking place for welcoming Haj pilgr
The UAE, which leads the Arab region in terms of competitiveness, and is home to many tech firms, needs to increase efforts to expand the use of latest digital technologies to further enhance its dom
Banks operating in the UAE will observe a four-day holiday on the occasion of Eid Al Adha. The Central Bank of UAE (CBUAE) has notified banks that the holidays will start on Monday, August 20, and th
Qatar pledged $15 billion (Dh55.09 billion) of investment in Turkey that will be channeled into Turkish financial markets and banks, a government source told Reuters yesterday. The investment package