The state-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) announced plans for a new 280-km pipeline near the Muscat Highway connecting Sohar and Muscat Refineries which will cut the heavy fuel tank truck traffic in Muscat by 70 per cent. The project will increase the storage capacity for diesel, petrol and connect the current storage facilities in Sohar and Mina Al Fahal refineries to cope with ever growing demands.
Musab Al Mahruqi, CEO of Orpic, said: "The new storage and loading station will reduce the load on the current Mina Al Fahal station which considered as the main station for loading and distributing fuel in Oman. As much as 70 per cent of Oman fuel is being distributed from Mina Al Fahal and the rest from Sohar Refineries and Raysut Port."
"Upon completion of the project, the new station will contribute 50 per cent of the expected local consumption in the Sultanate to cope with the growing demands while keeping the current stations in operation," he added. With this significant investment, we will remove the need to ship refined products from Sohar to Muscat and then truck them through the city, as we do today. Not only will it bring a new level of efficiency and lower costs to our business, it will reduce the number of fuel tank truck journeys in and around Muscat, he said.
"Every driver in Muscat will be pleased to hear of an initiative to remove traffic from the roads. This is just one of the ways in which we are improving all areas of our environmental impact," he added. Orpic has signed a Memorandum of Understanding (MoU) with Spanish Compania Logistica de Hidrocarburos (CLH) to benefit from their experience in designing, construction and operating the project. The pre-feasibility study was a result of the expected evolution of oil products' demand in the Oman in the future. It provides a solution to increase the efficiency of transportation and distribution logistics. The implementation of the Muscat-Sohar Pipeline Project will be carried out in three phases:
Under the Phase 1, a pipeline connecting the Muscat International Airport and the Mina Al Fahal Refinery by the main storage facility will be completed while in Phase 2 a pipeline that connects the Mina Al Fahal Refinery and the Sohar Refinery as well as the construction of an intermediate storage facility in Muscat will be completed. In the third Phase the construction of an additional strategic storage facility which will provide strategic reserves for Oman, allowing 30 days of fuel stocks for the nation is expected to be completed.
In addition, the new asset could potentially incorporate the existing logistic infrastructure in order to increase the overall efficiency of the distribution of oil products within the Sultanate of Oman. This would ensure that the local demand is fully satisfied, and reduce the number of tankers on the roads as well as the environmental impact. The establishment of the Muscat-Sohar Pipeline Project is another of Orpic's initiatives to serve Oman with pride.
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