MUSCAT: A masterplan for the development of new energy storage and terminal infrastructure at the Special Economic Zone at Duqm (SEZAD) is currently underway — part of a joint initiative by Oman Tank Terminal Company (OTTCO), a subsidiary of OQ Group, and Royal Vopak, a leading international liquids storage operator, to strengthen Duqm’s positioning in global energy logistics.

According to a senior OTTCO official, the masterplan is being jointly developed by OTTCO and Vopak, which last week signed a strategic agreement to establish a new company to oversee the delivery of the initiative.

“We have already started our masterplan study”, said Ali al Maamari, VP — Operations and Maintenance at OTTCO. “Both parties are working on it at present". At OTTCO, we are leveraging our expertise in energy logistics, domestic regulation, operational matters and in the available capacity and utilisation of the liquid jetty at the Port of Duqm. Vopak, for its part, is deploying its technical teams to initiate discussions on the masterplan study”.

Speaking to the Observer, Al Maamari said the new joint venture company — owned 51% by OTTCO and 49% by Vopak — will support both traditional energy flows and the evolving demands of the global energy transition towards more integrated and sustainable ecosystems.

“This strategic agreement between the two parties will enable the inflow of technology and expertise necessary to sustain Duqm’s development into a hub for the storage and handling of green energy products. While our existing storage terminal at Ras Markaz will remain dedicated to petroleum products, there is still space available at the Liquid Terminal within the port for the development of capacity to handle and store green energy commodities”, the official noted.

Significantly, the development of the new storage and handling infrastructure at the Liquid Terminal is envisioned in phases, depending on the requirements of investors developing major green hydrogen and other low-carbon fuel projects in Duqm SEZ. Initial capacity is envisaged primarily for green ammonia destined for export to overseas markets.

As for the storage of export-oriented green hydrogen itself, this is not immediately contemplated because of the costs and inherent technological challenges associated with handling and shipping this commodity. Nevertheless, green hydrogen earmarked for domestic utilisation will need to be suitably stored — a requirement that broadly falls under OTTCO’s mandate as the National Champion for centralised green ammonia storage within the country’s strategy. As part of this mandate, OTTCO is tasked with building and managing common-user infrastructure to enable economies of scale and avoid duplication across developers in the green molecules value chain.

OTTCO currently operates the Ras Markaz crude oil storage terminal, with a total capacity of 26.7 million barrels, including 5.2 million barrels dedicated to the Duqm Refinery. The company also manages the Port of Duqm storage and export terminal.

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