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Muscat Suhar Product Pipeline and Al Jefnain terminal inaugurated

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Tanks and Terminals,

Orpic Logistic Company, a joint venture (JV) between Orpic and CLH officially inaugurated yesterday one of its strategic growth projects, the Muscat Suhar Product Pipeline (MSPP) and the main fuel terminal in Al Jefnain, wilayate of Al Seeb under the auspices of General Sultan bin Mohammed AL Nu’amani, Minister of the Royal Office, and in the presence of a number of Ministers, members of the Board of Directors of Orpic, Their Excellencies representatives of the Al Shura Council, and community leaders.

Commenting on this occasion, Sultan bin Salim Al Habsi, Deputy Chairman of the Board of Governors of the Central Bank of Oman and Deputy Chairman of Orpic Board of Directors, said: “We are proud to witness the inauguration of one of the three important strategic growth projects undertaken by Orpic which is the MSPP and Al Jefnain Terminal. The project comes in response to the strategic objectives set by the government for developing oil products logistics solutions in the Sultanate to meet the rapidly growing demand for fuels".

The US$336 million investment is an important logistic project across the Sultanate that delivers more than 50% of Oman’s fuel via the storage facility in Al Jefnain. In addition to meeting the domestic future demand for fuels, this project reduces pollution resulting from lower truck movements in Muscat by 70%.

Ahmed Saleh Al Jahdhami, CEO, Orpic said: “MSPP and Al Jefnain Terminal project is the first of its kind being constructed in Oman – utilising a single pipeline to produce accurate product and bringing a new level of efficiency and lower costs to its business.”

"The project offers many social, economic and environmental benefits, including improved road safety, efficient fuel supply, and reduced pollution by lower movement of oil tanker trucks. On the In-country value (ICV) front, MSPP has contributed by US$149 million to Omani local purchases and SMEs, representing 44% out of the total project cost". Al Jahdhami added.

With around 170 000 m3 of storage capacity, the new terminal increases the nation’s storage capacity for refined products by 70%. This additional capacity enhances the securing of fuel supply to the population.

The MSPP and Al Jefnain terminal project is a JV partnership between Orpic and Spanish firm Compañía Logística de Hidrocarburos (CLH).

The CEO of CLH, Jorge Lanza Perea, commented on this occasion: "The MSPP project is a significant landmark in the history of our company and we believe it will open the door to new opportunities. CLH is definitely committed to develop the Omani economy and talent and we hope we can do more things together both in Oman and in the region".

The MSPP and Al Jefnain Terminal features a 290 km pipeline which is connected by three sections of the pipeline network, including a 10” multi-product pipeline of 45 kms length from Mina Al Fahal refinery to Al Jefnain terminal. The second pipeline is an 18” multi-product pipeline of 220 kms length from Suhar refinery to Al Jefnain terminal. The last one is a 10” dedicated pipeline for jet fuel of 25-km length from Al Jefnain terminal to the new Muscat International Airport. The dedicated airport pipeline comes to support the expansion of the new Muscat International Airport in which jet fuel gets pumped directly from the terminal in Al Jefnain to the airport without requiring tanker trucks - increasing the security of jet fuel supply to the airport.

Additionally, the new terminal is equipped with 16 loading bays with capacity to load up to 700 trucks per day with products to be transported across petrol stations. Furthermore, the new terminal is supplied by two multiproduct and bidirectional pipelines connected to Orpic’s Suhar and Muscat Refineries.

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