Oman’s entry into full-scale bunkering at the Port of Duqm may be delayed to August when a bunker barge is expected to be operating, traders told S&P Global Platts.
The foray was delayed from Q2 2021 because of COVID-19, they said. Oman Oil Marketing Co., which is handling the expansion, did not respond to emails from Platts seeking comment on the plans. Duqm currently has limited bunkering, and only in gasoil.
The expansion will initially involve VLSFO, and provide a basis for other ports in Oman to provide ship fuels including at Salalah, Sohar and Muscat, traders said. The Salalah port is moving ahead with plans to provide VLSFO and a physical supplier there is considering offering VLSFO, traders said, though the timing couldn’t be determined.
The Duqm bunkering includes 30,000 cu m of storage capacity for heavy fuel oils as well as lighter distillates such as marine gas oil. In April, Oman Oil Marketing signed an agreement with Oman Tank Terminal Co. to handle maintenance and operations of the bunker terminal. Oman Tank and Oman Oil Marketing are both part of the OQ Group, Oman’s national oil company. Oman Tank is also building its own liquids export terminal at Duqm.
Duqm is not seen as a competitor to the UAE’s Port of Fujairah, which is also on the Gulf of Oman and the world’s third largest bunkering hub, but as an option to avoid the Strait of Hormuz, a trader said. The Duqm refinery, which is expected to start in H1 of 2022, will also support the bunkering operation, Oman dry dock and the Ras Markas crude oil park, sources said.
Source: Platts