Orpic Logistics Company (OLC), a joint venture created by Compañía Logística de Hidrocarburos (CLH) and Oman Oil Refineries and Petroleum Industries (Orpic), has started the construction of the Muscat Sohar Products Pipeline (MSPP) Project.

At the ceremony held to mark the start of the construction work Salvador Guillén, Managing Director of the CLH Group, highlighted the professionalism and commitment of the team leading this ambitious project. “We are honoured to be part of OLC and to participate in such an important operation for Oman,” he declared.

Orpic’s CEO, Musab Al Mahruqi, explained the significance of this project for the Sultanate of Oman. “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,” he said.

Valued at USD320 million, the MSPP project will consist of the construction of a new storage facility near Muscat, the capital of Oman, as well as a multiproduct oil pipeline network that will connect this new facility with the two current refineries in the country and with the international airport.

This two-way pipeline will be 290 kilometres long, and it is the first of its kind to be commissioned in that country. As for the storage facility, it will have a capacity of over 170,000 cubic metres. In addition, the new network will include the latest control systems via satellite, as well as the most advanced safety and security and environmental protection.

This system will increase the security of supply in Oman, as well as optimising its distribution costs by removing the need for Orpic to ship and truck refined products. Therefore, it will not only bring a new level of efficiency and lower costs to its business but will also reduce the number of road tanker trips in and around Muscat.

Oman-based GPS Company is the lead works contractor, supported by Abantia, a Spanish construction company with experience in storage terminal construction, and Diseprosa, an engineering company also based in Spain.

It is estimated that these infrastructures will be operative by 2017 and that the new terminal, once commissioned, will supply 50% of fuels in Oman.