Singapore-based Trescorp has announced that it will launch a new 45 ha terminal in Sohar port, worth of US$600mn, with the first phase aiming to receive, store and blend crude oil, fuel oil and diesel
The expansion plans for phase two include gasoline blending, jet fuel, asphalt and a lube oil blending plant, said the company.
Trescorp said that it has selected Sohar because of its strategic location, which makes it closer to the Gulf States and the Indian subcontinent, as well as its excellent deep-water access.
The construction of phase one is expected to commence in 2018, with an initial storage capacity of 600,000 mcm, while future expansion plans will take the total storage capacity up to 1.8 mcm. According to the company, the operations are set to commence by 2020.
Hamood Al Hashmi, chairman of Trescorp, said, “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 mcm.”
He stated that the new terminal will focus on ensuring shorter turnaround times for vessels and faster re-exports, thus benefitting the trading partners.
The company also noted that five ha of the new Trescorp development are allocated for the development of a Lubrication Park, aiming to blend various grades of lubricating oil products, including marine grade lubricants. Supply of the products will include bulk delivery using lube barges to tankers bunkering in Sohar port.
Mark Geilenkirchen, CEO of Sohar, said, “The commercial viability is to leverage existing petroleum trading infrastructures in Dubai, potentially adding offshore floating storage facilities in our new anchorage area.”
