OQ, the global integrated energy group from Oman, has officially celebrated the groundbreaking ceremony for its strategic fuel reserve project in the Dhofar Governorate, representing an investment of over 47 million Omani Riyals (approximately USD 124 million).
The ceremony, held under the patronage of His Highness Sayyid Marwan bin Turki Al Said, Governor of Dhofar, brought together various officials and dignitaries from the governorate. This project marks a significant advancement in OQ’s efforts to bolster the local fuel supply in Dhofar and to ensure readiness for emergency situations. The facility will store key petroleum derivatives, including MOGAS-91, MOGAS-95, gas oil, and jet fuel. With a capacity exceeding 110,000 cubic meters, the facility is designed to secure a 30-day fuel supply for Dhofar, significantly enhancing the region’s resilience to potential energy crises.
This initiative aligns with OQ’s broader mission to meet Oman’s growing demand for petroleum products, driven by population growth and an increase in commercial and investment activities. The strategic fuel storage project in Dhofar is part of a nationwide effort to strengthen the country’s energy infrastructure.
His Highness Sayyid Marwan bin Turki Al Said, Governor of Dhofar, commended the project, stating, “This project is the culmination of efforts by various entities in the Sultanate of Oman, led by the Ministry of Energy and Minerals and OQ Group, aimed at enhancing sustainable energy infrastructure in the Dhofar Governorate and across Oman. It ensures that the growing demand for petroleum derivatives is met, contributing significantly to sustainable economic development in the governorate and providing security during emergencies.”
His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals, emphasized the importance of the project: “The groundbreaking of the strategic fuel reserve project in Dhofar is a critical step in reinforcing Oman’s fuel reserves, ensuring the availability of essential products, and securing supplies during emergencies. This development is crucial in guaranteeing our petroleum product needs are met.”
His Excellency also highlighted a similar strategic fuel reserve project slated to begin soon in the Musandam Governorate, with a planned capacity of 14,536 cubic meters. Upon completion, Oman’s total fuel storage capacity will exceed 350,000 cubic meters, with key facilities in Jifnain, Suhar, and Raysut.
Ashraf Hamed Al Mamari, Group CEO of OQ, addressed the gathering, noting that “The strategic fuel storage facility in Dhofar, with a capacity of 110,000 cubic meters, is another milestone in OQ’s investments in Dhofar Governorate, complementing our existing projects such as the liquefied petroleum gas (LPG), ammonia, methanol plants, and gas pipelines.”
He further explained that the project was initiated under the directive of the Omani government, emphasizing the importance of ensuring a consistent supply of petroleum products across all governorates. Al Mamari also confirmed that all necessary agreements and contracts, including those for land use in the Salalah Free Zone, have been finalized. He reiterated OQ’s commitment to securing Oman’s petroleum derivatives supply, highlighting the company’s total refining capacity of 530,000 barrels per day, including the Duqm Refinery, Mina Al Fahal Refinery, and Suhar Refinery.
The project comprises three main components: a fuel reserve facility within the free zone, a pipeline connecting the pumping station at Salalah Port to the storage tanks, and the expansion of the existing pumps at Salalah Port. The new Salalah station will also be connected to the existing Raysut station.
The facility, covering an area of 150,000 square meters, will be constructed over 36 months, with a focus on engineering, procurement, and construction activities. The design includes 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, with provisions for future expansion.
OQ continues to play a vital role in supporting Oman’s industrial sector through the production of petroleum derivatives. 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.
