As part of the agreement, Shell will build a bunkering terminal to provide different grades of quality fuels and lubricants as well as other ancillary facilities to vessels calling at the Port, it said in a statement.

“This new agreement with Shell Oman underlines the clear ambition of Port of Duqm to become a future bunker hub serving the entire region,” Reggy Vermeulen, CEO of Port of Duqm, said.

“With new global bunker regulations coming into effect as from 2020, Port of Duqm plans to take full advantage of its prime location as well as the availability of the right fuel specs and offer prime bunker services accordingly,” Vermeulen added.

The IMO will cap global sulfur content in marine fuels at 0.5% starting January 1, 2020, from 3.5% currently. This applies outside the designated emission control areas where the limit is already 0.1%.

Shipowners will have to switch to more expensive cleaner fuels or use HSFO with scrubbers to comply with this rule.

PDC is a joint venture between the Oman Government and Port of Antwerp Consortium.

Being closely located to the major oil and gas as well as mining projects in Oman, upon completion in 2020, Port of Duqm is seeking to increase its activity level in future, it said.

The Port has a current capacity of 100,000 to 200,000 TEUs, four million tons of dry bulk, and one million tons of project, break bulk and heavy lift cargos, it said.

In November, the Port of Duqm said it received its first cargo for the Duqm refinery project.

A 3,396 mt cargo consisting of about 1,350 specialized steel plates, imported from India, were discharged at the port’s commercial quay, Port of Duqm said on its website.

These steel plates will be used for building the crude oil storage tanks at Raz Markaz, it said at the time.

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