OQ investments boost Oman's fuel storage capacity
Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects.
The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024.
Underscoring the importance of the project, the Ministry stated: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities. The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies,' the Ministry added in its recently published 2024 Annual Report.
Earlier, in August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added.
When fully operational—targeted for around April 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport.
Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal.
Since commencing operations just over two years ago, Ras Markaz has handled 491 vessels as of the end of April 2025. In this period, it imported over 950 million barrels of crude oil and exported approximately 17 million metric tonnes of petroleum products.
Earlier this year, OTTCO signed a strategic partnership with Royal Vopak, the leading Dutch fuel logistics company, aimed at transforming Duqm into a global hub for storage services. The company is also exploring opportunities to support the development of advanced infrastructure for the storage, handling, and export of green ammonia.
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