OQ, the global integrated energy group, has today laid the foundation stone for its Strategic Fuel Storage Project in Musandam. The project, with an investment of over OMR 78 million (approximately USD 204 million), was inaugurated under the auspices of His Excellency Ibrahim Said Al Busaidi, Governor of Musandam, and in the presence of local dignitaries and officials.

This initiative forms part of OQ’s commitment to sustainable economic development and addresses 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 (91 and 95), oil gas, and jet fuel, ensuring uninterrupted supply during emergencies. The facility will have a storage capacity exceeding 14,536 cubic metres.

His Excellency Al Busaidi highlighted the significance of the project: “The Strategic Fuel Storage Project ensures that Musandam’s fuel needs are met, even in emergencies covering the needs of nationals and residents for different fuel products. This is a vital contribution from OQ to the governorate, bolstering its ongoing investments and its support for local communities.”

His Excellency Eng. Salim bin Nasser Al Aufi, Minister of Energy and Minerals stated that the groundbreaking of the strategic fuel storage project in Musandam is part of the ministry's ongoing efforts, in collaboration with OQ Group, to ensure the availability of petroleum products for residents and citizens, especially in emergencies. His Excellency also highlighted the increasing local demand for petroleum products driven by population growth and expanding commercial activities.

Speaking at the ceremony, Ashraf Hamed Al Mamari, Group CEO of OQ, said: “This project marks another addition to OQ Group’s investments in Musandam of over 800 million Omani Riyals. It also underscores OQ Group’s commitment to fulfilling its national responsibility in advancing energy sustainability and responding effectively to the growing energy demands in the governorate.”

The contract for the project was signed in April 2024, with construction having commenced in September. The project is expected to be ready to receive products in October 2026, and operational by December of the same year, with full completion slated for April 2027.

Additionally, the project will support local economic growth, with 35% Omanisation, 20% of materials supplied by local companies, and 7% sourced from small and medium-sized enterprises. OQ has also offered training opportunities for 12 Omanis as part of its broader commitment to workforce development.

The facility, covering approximately 100,000 square metres, will include storage tanks, a warehouse, a control room, a pump area, a truck loading zone, and fire safety systems.

The project, set to be completed within 36 months, will involve both engineering and construction phases leading to full operation. It will feature a fuel tank terminal and a marine facility to receive ships.

The terminal will have a platform for receiving products, connected to a pipeline at a depth of around 39 metres. The platform will be powered by solar and wind energy. The pipeline will consist of two 12-inch lines, each two kilometres long, and will be accompanied by a parallel fibre optic cable.