OQ, the global integrated energy group, recently celebrated the groundbreaking ceremony of the strategic fuel reserve project in the Dhofar Governorate, marking an investment of over OMR47 million (equivalent to $124 million). This new facility aims to enhance the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives. With a storage capacity exceeding 110,000 cubic metres, the facility is designed to secure a 30-day fuel supply for Dhofar. This initiative is part of OQ’s broader efforts to meet the nation’s demand for petroleum products, aligning with the growing population and surge in commercial and investment activities.
HH Sayyid Marwan bin Turki Al Said, Governor of Dhofar, praised the project, stating that it is aimed at enhancing the infrastructure for sustainable energy in the Dhofar Governorate and the Sultanate of Oman in general. He expressed confidence that this investment will significantly contribute to supporting sustainable economic development in the governorate, as well as securing various needs, including during emergencies. Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, emphasized that the groundbreaking of the strategic fuel reserve project is a significant step in reinforcing Oman’s strategic fuel reserves and securing supplies during emergencies.
Ashraf Hamed Al Mamari, Group CEO of OQ, highlighted that the strategic fuel storage facility is another milestone in OQ’s investments in Dhofar Governorate, complementing existing projects such as the liquefied petroleum gas (LPG), ammonia, methanol plants, and gas pipelines. He noted that the project has been initiated under the directive of the Omani government to ensure the supply of petroleum products across all governorates in the Sultanate. Al Mamari emphasized OQ’s commitment to securing the supply of petroleum derivatives for Oman, with a total refining capacity of 530,000 barrels per day.
The project consists of three key components: a fuel reserve facility within the free zone, a pipeline connecting the pumping station at Salalah Port to the fuel storage tanks in the free zone, and the expansion of the existing pumps at Salalah Port. Additionally, the new Salalah station will be connected to the existing Raysut station. The reserve facility will be built on an area of 150,000 square meters, with the construction phase set to span 36 months, encompassing engineering works, procurement, and construction activities, culminating in the initial operation.
The facility will feature tanks, a warehouse, a control room, an administration building, a maintenance workshop, a pump area, a tanker loading zone, firefighting and safety facilities, and other complementary components. Provisions for future expansion and increased storage capacity have also been considered. OQ continues to secure the production of petroleum derivatives, which play a vital role in 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.
Overall, the strategic fuel reserve project in Dhofar is a significant development that will enhance the fuel supply in the region, ensuring preparedness for emergencies and meeting the growing demand for petroleum products in Oman. This initiative reflects OQ’s commitment to sustainable energy infrastructure and economic development in the Sultanate, contributing to the stability and resilience of the local energy supply. The project represents a key investment in Oman’s energy sector and reinforces the nation’s strategic fuel reserves, securing essential products and supplies for the future.
