Trescorp to Build New Oil Terminal at Sohar Port
Singapore’s oil company Trescorp is to launch a new 45-hectare terminal in Oman-based Port of Sohar with an investment of USD 600 million.
The new facility will feature six deep-water berths, with 25 metre drafts, one of them capable of receiving very large crude carriers (VLCC) oil tankers of up to 320,000 dwt. The terminal will be located in Sohar Port South, where a recently announced land reclamation project would create more space for industry.
In its first phase, the terminal will be equipped to receive, store and blend crude oil, fuel oil and diesel. Expansion plans for phase two include gasoline blending, jet fuel, asphalt and a lube oil blending plant.
Construction of phase one is scheduled to start next year, with an initial storage capacity of 600,000 m3, while future expansion plans will take the total storage capacity up to 1.8 million m3. The works would be privately funded with initial investments for phase one estimated at USD 187 million.
Operations are set to commence by 2020. As well as planned bunker services from Trescorp, SOHAR Port is currently in advanced licensing negotiations with two other bunker service providers following a recent call for tender.
The USD 600 million investment would be made in anticipation of significant growth in petroleum trading in the Gulf Cooperation Council (GCC) region, as well as growing demand for bunker services.
“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 m3,” Hamood Al Hashmi, Chairman of Trescorp, said.
Marine facilities at the new terminal would ensure shorter turnaround times for vessels and faster re-exports, according to Trescorp.
“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,” Al Hashmi added.