Energy Logistics Project at Duqm: Key Insights for Investors and Business Owners in Oman
MUSCAT: A comprehensive masterplan is underway for the development of new energy storage and terminal infrastructure at the Special Economic Zone at Duqm (SEZAD). This initiative is a collaboration between Oman Tank Terminal Company (OTTCO), a subsidiary of OQ Group, and Royal Vopak, a prominent international liquids storage provider, aimed at enhancing Duqm’s role in global energy logistics.
According to a senior official at OTTCO, the masterplan is being created collaboratively with Vopak, which recently entered into a strategic agreement to form a new company tasked with overseeing the initiative’s implementation.
"We have already initiated our masterplan study," stated Ali al Maamari, Vice President of Operations and Maintenance at OTTCO. "Both parties are actively working on this project." OTTCO is leveraging its expertise in energy logistics, domestic regulations, and operational capacity at the liquid jetty in the Port of Duqm, while Vopak is deploying technical teams to kickstart discussions related to the masterplan.
Al Maamari also highlighted that the newly formed joint venture company, with OTTCO holding a 51% stake and Vopak 49%, will facilitate both traditional energy flows and the evolving needs of the global energy transition towards more integrated, sustainable ecosystems.
"This strategic agreement will foster the influx of technology and expertise vital for transforming Duqm into a hub for the storage and handling of green energy products. While our existing storage terminal at Ras Markaz will continue to focus on petroleum products, there is ample space at the Liquid Terminal within the port for developing capacity to accommodate green energy commodities," he explained.
The construction of new storage and handling facilities at the Liquid Terminal is planned in phases, contingent upon the requirements of investors focusing on major green hydrogen and low-carbon fuel projects in Duqm SEZ. Initially, the capacity is expected to cater to green ammonia intended for export to international markets.
Although the immediate storage of export-oriented green hydrogen is not currently planned due to its associated costs and technological challenges, there will be a need for suitable storage of green hydrogen intended for domestic use. This task falls under OTTCO’s mandate as the National Champion for centralized green ammonia storage within the country’s strategic framework. OTTCO is responsible for developing and managing shared infrastructure to foster economies of scale and prevent redundancy among developers in the green molecules value chain.
OTTCO operates the Ras Markaz crude oil storage terminal, which boasts a total capacity of 26.7 million barrels, including 5.2 million barrels allocated for the Duqm Refinery. The company also oversees the Port of Duqm’s storage and export terminal.
Special Analysis by Omanet | Navigate Oman’s Market
The development of new energy storage infrastructure in the Special Economic Zone at Duqm positions Oman as a pivotal player in the global energy logistics market. Businesses should recognize the opportunity to explore partnerships in the emerging green energy sector, as the focus on sustainable solutions opens up avenues for innovation and investment. However, smart entrepreneurs and investors must be mindful of the technological challenges associated with green hydrogen storage, balancing potential rewards with the risks of high initial costs and operational complexities.
