SALALAH: OQ, the global integrated energy group, has officially commenced construction on a strategic fuel reserve project in Dhofar Governorate, marking an investment of over OMR 47 million (equivalent to $124 million). The groundbreaking ceremony, held under the auspices of His Highness Sayyid Marwan bin Turki al Said, Governor of Dhofar, was attended by several officials and dignitaries from the region.
The new strategic fuel storage facility is a significant initiative aimed at bolstering the local fuel supply in Dhofar, ensuring readiness for emergencies by storing vital petroleum derivatives, including MOGAS-91, MOGAS-95, gas oil, and jet fuel. With a planned storage capacity exceeding 110,000 cubic meters, the facility is designed to secure a 30-day fuel supply for the Dhofar region, thereby enhancing its resilience against potential energy crises.
This project aligns with OQ’s broader strategy to meet Oman’s growing demand for petroleum products, driven by the nation’s increasing population and the surge in commercial and investment activities.
Speaking at the event, HH Sayyid Marwan bin Turki al Said, Governor of Dhofar, praised the initiative, stating, “This project represents the concerted efforts of various entities in the Sultanate of Oman, led by the Ministry of Energy and Minerals and OQ Group, to enhance sustainable energy infrastructure in the Dhofar Governorate and across Oman. It ensures that the growing demand for petroleum derivatives is met. We are confident that this investment will significantly contribute to sustainable economic development in the governorate and secure essential supplies, particularly during emergencies.”
Eng. Salim bin Nasser al Aufi, Minister of Energy and Minerals, emphasized the importance of the project, noting, “The groundbreaking of the strategic fuel reserve project in Dhofar is a crucial step in reinforcing Oman’s strategic fuel reserves, ensuring the availability of essential products, and securing supplies during emergencies. This development is vital for guaranteeing that our petroleum product needs are consistently met.” Al Aufi also mentioned that a similar strategic fuel reserve project is scheduled to begin in the Musandam Governorate, with a planned capacity of 14,536 cubic meters. Upon completion, these initiatives will increase the nation’s total fuel storage capacity to over 350,000 cubic meters, including key 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.
Ashraf Hamed al Mamari, Group CEO of OQ, highlighted the significance of the project, stating, “The strategic fuel storage facility, with a capacity of 110,000 cubic meters, is another milestone in OQ’s investments in Dhofar Governorate, complementing our existing projects, including the liquefied petroleum gas (LPG), ammonia, and methanol plants, as well as gas pipelines.” He added, “The strategic fuel reserve project in Dhofar has been initiated under the directive of the Omani government, represented by the Ministry of Energy and Minerals, which prioritizes the consistent supply of petroleum products across all governorates in the Sultanate.”
Al Mamari also noted that all necessary preparations for the project’s commencement, including engineering contracts and land usufruct agreements in the Salalah Free Zone, have been finalized. He further emphasized OQ’s commitment to securing Oman’s supply of petroleum derivatives, with a total refining capacity of 530,000 barrels per day. This includes 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 will include three main components: a fuel reserve facility within the Salalah Free Zone, a pipeline connecting the pumping station at Salalah Port to the fuel storage tanks in the free zone, and the expansion of existing pumps at Salalah Port. Additionally, the new Salalah station will be integrated with the existing Raysut station.
Spanning an area of 150,000 square meters, the construction phase is set to last 36 months, covering engineering works, procurement, and construction activities, leading to the facility’s initial operation. The facility will be equipped with storage tanks, a warehouse, a control room, an administration building, a maintenance workshop, a pump area, a tanker loading zone, and firefighting and safety facilities, with provisions for future expansion and increased storage capacity.
OQ remains committed to securing the production of petroleum derivatives, which are crucial to supporting Oman’s industrial sector. In 2023, OQ Refineries and Petroleum Industries produced 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.
