Oman Plans to Expand Duqm Crude Oil Storage Capacity to 10 Million Barrels

en.Wedoany.com Reported - On September 29, Oman's state-owned energy group OQ disclosed that it plans to increase the currently utilized onshore crude oil storage capacity in the Duqm area from approximately 5 million barrels to 10 million barrels within the next three years, while also evaluating the procurement of two Very Large Crude Carriers (VLCCs) for floating storage. Each VLCC to be procured can store approximately 2 million barrels of crude oil, and OQ plans to decide whether to proceed with the procurement within 2026; if the plan is approved, it is expected to take approximately 6 months for the vessels to complete deployment and enter storage service.

The onshore expansion corresponds to the Ras Markaz crude oil storage terminal operated by Oman Tank Terminal Company (OTTCO). The terminal is located south of the Duqm Special Economic Zone, facing the Arabian Sea. Its existing Phase I infrastructure has a design capacity of approximately 26 million to 26.7 million barrels, of which approximately 5.2 million barrels have been put into actual utilization, and it is connected to the Duqm Refinery via a pipeline of approximately 80 kilometers. OQ previously disclosed that Ras Markaz Phase I covers an area of approximately 10 square kilometers, and the entire terminal has a long-term planned land area of approximately 40 square kilometers, with conditions for continued expansion of large crude oil storage tanks and supporting loading and unloading facilities.

OTTCO launched the EPC pre-qualification process for the next phase of tank expansion at Ras Markaz at the end of July this year, planning to build 8 new crude oil storage tanks, each with a nominal capacity of approximately 650,000 barrels, adding a total of approximately 5.2 million barrels of storage capacity. Contractors submitted pre-qualification documents in early August, and the project is listed as Phase II construction content of the Ras Markaz Crude Oil Storage Project.

According to OQ's latest plan, the medium-term target for onshore oil storage facilities in Duqm is approximately 10 million barrels, with the long-term target further increased to approximately 40 million barrels. At the same time, if the two VLCCs to be procured are put into use, they can provide an additional approximately 4 million barrels of floating storage capacity. OQ is still comparing vessel procurement costs with storage business returns, and the floating storage plan has not yet entered the procurement implementation stage.

Since the Ras Markaz terminal was put into operation in 2023, it has mainly been responsible for crude oil receiving, storage, blending, and supplying oil to the Duqm Refinery. According to information from the Duqm Special Economic Zone of Oman, the terminal is located outside the Strait of Hormuz and can directly connect to international shipping routes in the Arabian Sea; the existing facilities can also provide long-term and short-term storage services for international oil companies, traders, and strategic reserve customers.

OQ also stated that the Omani government is discussing potential trans-peninsula crude oil pipeline options with regional countries, and Duqm has long been regarded as one of the potential terminals for crude oil exports from Gulf oil-producing countries such as Saudi Arabia and Kuwait.