Trescorp Alliance Pte Ltd, a Singapore-based trading company focusing on crude oil and petroleum products, plans to build a 45-hectare terminal in Oman. Five hectares of the development has been allocated to a lube blending plant. Terminal operations are set to commence by 2020.
Investment in the facility, which will include six deep-water berths, with 25-metre drafts, one of which will be capable of receiving VLCC oil tankers, is USD600 million.Construction of the facilities will be privately funded.The new terminal will be located in Sohar Port South, a recently announced land reclamation project at the fast-growing Omani hub, said a statement.
The new terminal will be located in Sohar Port South, a recently announced land reclamation project at the fast-growing Omani hub, said a statement.
“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,” said Mark Geilenkirchen, Sohar CEO.
The terminal will be developed in phases. Phase one, which will cost USD187 million, will include the construction of storage tanks and ancillary facilities to receive, store and blend crude oil, fuel oil and diesel fuel. Construction of phase one will commence next year, with an initial storage capacity of 600,000 cubic metres (cu m). Future expansion plans will bring the terminal’s total storage capacity to 1.8 million cu m. Phase two will include construction of gasoline blending, jet fuel and asphalt storage facilities, as well as a lubricant 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.
“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 cu m. 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,” said Hamood Al Hashmi, chairman of Trescorp.