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OTTCO Plans Another Ship to Floating Storage Facility

Source: Oman Observer 1/20/2016, Location: Middle East

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Oman Tank Terminal Company (OTTCO) is contemplating another vessel at its floating storage facility at Mina Al Fahal following strong demand for capacity. “We are now contemplating another ship. There is clearly demand from the exercise we have done. It is a unique service offering. It makes OTTCO the first company to provide floating storage linked to an energy futures contract”, said Said al Maawali, project director at OTTCO.

According to Al Maawali, the new storage facility will enable buyers to store their oil and optimise market conditions. It offers flexibility, reliability and allows investors to come in. He was speaking at Platts European Oil Storage Conference in Amsterdam.

He told delegates at the conference that the 2.1 million barrel capacity floating storage facility will help evolve the company into a crude hub.

According to Al Maawali, , the first floating storage contracts have been signed at the facility, located at Mina Al Fahal. Currently, China Oil, Glencore and Oman Trading International have won bids for access to the facility on the VLCC, which will be provided and operated by Oman Shipping Company.

The facility is an interim storage solution ahead of the Ras Markaz Crude Oil Park. The first phase, which will comprise 25 million barrels of storage, is expected to be ready by the end of 2019. Al Maawali said that the company wants to grow from floating storage, to landbased storage, through to becoming a crude oil hub. He said that the new facility to be built at Ras Markaz, is needed as oil storage in Sohar is already full. “It will help them (manage) unforeseen circumstances,” Al Maawali said.

The tanks will help boost trading of Oman crude oil futures on the Dubai Mercantile Exchange (DME) by making more oil available that can be delivered against the futures contracts, Al Maawali said, and it would also help guard against price volatility. He said future phases of the project could expand its capacity to as much as 200 million barrels of storage. According to the monthly report released by the Ministry of Oil and Gas, the Sultanate’s total production of crude oil in December alone stood at 31.21 million barrels, a daily rate of 1,006,905 barrels, a growth of 1.12 per cent compared to the previous month. The report pointed out that the total crude oil exports in December 2015 stood at 25.62 million barrels, a daily rate of 826,547 barrels, showing a growth of 0.77 per cent over the previous month.

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Related Categories: General  LNG Carriers  LNG Terminal  Natural Gas Storage  Oil and Gas Pipeline  Oil Storage  Railways  Tank Truck  Tankers 

Related Articles: General  LNG Carriers  LNG Terminal  Natural Gas Storage  Oil and Gas Pipeline  Oil Storage  Railways  Tank Truck  Tankers 


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