Oman’s newest oil terminal, encompassing a complex of facilities for the storage and export of refined petroleum products from the under-construction Duqm Refinery & Petrochemical scheme, is rapidly taking shape within the Port of Duqm on the Sultanate’s southeastern coast.
When operational in 2023, alongside the multibillion-dollar refinery project, the oil terminal will position Duqm as a new energy hub for Oman, according to a report published in Duqm Economist, the quarterly newsletter of the Special Economic Zone Authority of Duqm (SEZAD).
The Duqm Liquid Bulk Berth, as it is formally referred to, is a landmark in its own right. Conceived initially as an export facility for the refined petroleum products of Duqm Refinery, it has since been scaled up to serve assorted international energy firms looking to operate out of Duqm.
Leading global dredging and maritime infrastructure services provider Royal Boskalis Westminster NV was selected by SEZAD in 2017 to construct the bulk liquid terminal at the Port of Duqm at a cost of RO 199.1 million ($510 million). The contract called for, among other things, the construction of a 980-metre quay wall, deepening of the port basin to – 18 metres and approach channel to – 19 metres, dredging and reclamation works, and the establishment of a new double berth jetty island.
Worley Parsons provided construction supervision services for the overall project supported by specialists drawn from SEZAD, Tatweer and Duqm Refinery. While Phase 1 of the project was completed last year, the second phase was delivered in the second quarter of this year.
In conjunction with the project, around 79 hectares of terminal capacity was developed adjacent to the 4.6 kilometre-long secondary breakwater. However, following heightened international investment interest in Duqm, a further 55 hectares was reclaimed from the sea to create new terminal capacity for current and future companies looking to capitalise on the SEZ’s strategic appeal.
Following the completion of the marine infrastructure, the consortium consisting of CB&I and Saipem has since commenced construction work on a crude tank farm, product export terminal and other facilities as part of its commitments under the EPC-3 package of the contract for the implementation of the Duqm Refinery project.
An 80km crude pipeline linking the new refinery with the Raz Markaz Crude Oil Park just north of the SEZ is also included in this package. Crude storage capacity envisaged at the Raz Markaz is presently estimated at five million barrels.
Storage capacity planned at the Bulk Liquid Terminal will cater for a variety of refined products emerging from the refinery. But a system of pipelines running from the refinery to the berth will also facilitate the direct loading of ships, particularly in the case of LPG and high sulphur fuel oil. On the other hand, dry bulk products such as petroleum coke and elemental sulphur will be transported by truck to the terminal and stored in warehouses pending their export to overseas markets.
As part of the Saipem’s scope of works, as many as 18 storage tanks will be constructed at the Duqm Liquid Berth for storing product from the refinery. Eight of these tanks are earmarked for naphtha, six for diesel and four for jet fuel. High-tech loading arms, firefighting systems and flare control system are also part of an elaborate network of investments being made into the delivery of a world-class bulk liquid terminal at Duqm.
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