Vopak’s Major Investments in Al Duqm Energy Park: What It Means for Business Growth in Oman
MUSCAT, NOV 3 – The leading independent tank storage company Royal Vopak is set to play a pivotal role in establishing an energy park at the Port of Duqm, dedicated to the storage and export of liquid bulk fuel commodities. Initially, the facility will manage conventional fuel products, with plans to expand into green commodities as they become available within the Special Economic Zone at Duqm (SEZAD).
Last week, the Netherlands-based company signed a shareholder agreement with Oman Tank Terminal Company (OTTCO), a subsidiary of OQ Group, forming a joint venture to invest in and develop the proposed energy park at the port’s Liquid Terminal.
Investments in the new storage and handling infrastructure are projected to reach several hundred million dollars, according to Marcel van de Kar, Managing Director of Vopak Oman.
“With this shareholder agreement, Vopak marks its first entry into Oman, specifically in Al Duqm, where we will develop an energy park for storing various types of energy and products,” said van de Kar. “This initiative will support the region’s development and its emergence as a future trading hub.”
Vopak is the second major international tank storage company to invest in Oman, following Advario, which operates at SOHAR Port and Freezone. Operating in more than 20 countries worldwide, Vopak is a key player in the global energy and chemicals supply chain, providing essential infrastructure for the safe storage and handling of liquid bulk products, including oil, chemicals, gases, and increasingly, new energy carriers such as hydrogen, ammonia, and CO₂.
Speaking exclusively to the Observer, van de Kar outlined that the joint venture will invest in storage tanks and related facilities at the Liquid Terminal for products including ammonia, liquid hydrogen, LNG, LPG, and other liquid commodities. These facilities will support the storage and handling needs of upcoming petrochemical projects downstream of the Duqm Refinery (OQ8), as well as green molecule initiatives under development in Al Wusta Governorate.
He emphasized that the company’s focus extends beyond existing energy supplies to future flows driven by the shift from green electricity to green molecules. He highlighted hydrogen converted into green ammonia as a key product under exploration in partnership with Hydrom and various projects in the Duqm area aimed at producing green hydrogen for export through Vopak’s facilities.
Much of the planned investment is set to enhance storage capacity at the Liquid Terminal in the Port of Duqm. “As a global leader in tank storage, we bring extensive experience and expertise in operations, efficiency, and innovation,” van de Kar stated.
“We intend to implement the advanced technologies and best practices developed globally here in Al Duqm. Our investments span multiple supply chains and will total hundreds of millions of US dollars.”
Special Analysis by Omanet | Navigate Oman’s Market
The entry of Royal Vopak into the Port of Duqm through a major joint venture signals a transformative opportunity for Oman’s energy sector, positioning Duqm as a future global trading and storage hub for both conventional and green fuels. Businesses and investors should strategically consider the expanding infrastructure and evolving demand in green energy commodities like green ammonia and hydrogen, as Oman leverages its SEZAD advantages to lead in next-generation energy logistics and export. This also presents potential risks tied to the scale of investment and market shifts, requiring vigilant adaptation to technological innovations and regulatory developments.
