$320 million for Muscat-Sohar pipeline project

MUSCAT: Orpic’s Muscat-Sohar Products Pipeline (MSPP) and Al Jifinan Terminal project, which will connect the company’s existing Mina al Fahal refinery, with refineries in Sohar — via a new two-way, 290-km, multi-product pipeline — broke first ground yesterday on the future site of the project’s Al Jifinan Terminal.

To be valued at $320 million, this project is the first-of-its-kind to be constructed in Oman, enabling Orpic to eliminate its reliance on above-ground methods of transportation for oil products.

Musab al Mahruqi, Orpic CEO, said the significance of the MSPP project for the local communities where Orpic operates; Orpic and its employees; and the Sultanate of Oman.

“To achieve our vision of building an Omani integrated refining and petrochemical business we are proud of, we must support opportunities to grow our people, grow our business and grow our capacity to meet the needs of Oman and international markets,” he said.

“In addition to meeting the domestic demand for fuels, which is growing at seven per cent per annum, this project will deliver numerous social, economic and environmental benefits including job growth, improved road safety, increased jet fuel supply, logistic efficiencies, and reduced pollution resulting from pipeline transportation,” Mahruqi said. Upon commissioning in 2017, the Jifnain Terminal will deliver 50 per cent of Oman’s fuel via the modern storage facility.

“Delivery of Orpic’s MSPP project is in line with our strategic growth plan to revolutionise the way we operate our oil product logistics model — focusing on a higher standard of efficiency, lower costs, eliminating safety and security hazards, improving environmental impacts, and serving the Sultanate with pride,” Mahruqi said.

Orpic Logistics, a joint venture between Orpic and the Spanish firm Compañía Logística de Hidrocarburos (CLH), is delivering the MSPP project.

Salvador Guillen, Managing Director, CLH, said though the MSPP project is ambitious, it has a highly dedicated and professional team committed to delivering the project objectives.

“We are honoured to be part of Orpic’s OLC project team and participate in such an important operation for Oman.”

The Oman-based GPS Company, which has business activities spread across the GCC, is the lead contractor, supported by Spanish firms Abantia and Diseprosa.

Orpic’s MSPP project is split into three sections: MAF-Jifnain Terminal: 40km (10 inches), JifnainTerminal-Airport: 30 km (10 inches), and Sohar-Jifnain Terminal: 220-km (18 inches). The project will constitute modern control systems with latest SCADA technology, leak detection, and telecommunications network. It will also be equipped with loading facilities designed to cater to the loading of more than 500 trucks per day.

SOURCE: OMAN DAILY OBSERVER

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