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Oman Oil Refineries and Petroleum Industries Company (Orpic) has broken ground on its $320-million Al Jifnain Terminal and associated fuel pipeline project, which is to connect the Mina Al Fahal (Muscat) and Sohar refineries via a 290-kilometre pipeline.

The oil products distribution centre at Al Jifnain forms the centrepiece of an initiative to build the logistics infrastructure necessary to secure the supply of oil products for entire country.

The Muscat Sohar Pipeline Project (MSPP) is to be the first of its kind in Oman, and enable Orpic - operator of both the Mina Al Fahal and Sohar refineries - to reduce its reliance on above-ground methods of transporting oil products.

Commenting on the groundbreaking, Sultan bin Salim Al Habsi, chairman of Orpic's board of directors, said: "We are delighted to celebrate, today, the groundbreaking of an important and a vital project which is needed to keep up with the requirements of development in the Sultanate. This project will contribute to enhancing the oil transportation infrastructure in the Sultanate to keep pace with the growing demand for fuel in the Sultanate."

Musab bin Abdullah Al Mahruqi, Orpic CEO, explained the significance of the project, saying: "To achieve our vision of building an Omani integrated refining and petrochemical business we are proud of, we must support opportunities to grow our people, grow our business and grow our capacity to meet the needs of Oman and international markets."

"In addition to meeting the domestic demand for fuels, which is growing at seven percent 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," Al Mahruqi added.

The Al Jifnain facility, located around 20 kilometres from Muscat International Airport, is being built along the route of the existing crude oil pipeline that connects the Mina Al Fahal and Sohar refineries. It is expected to cater for 50 percent of Oman's fuel demand following commissioning of the project in 2017.

The terminal is to include 12 tanks with a total storage capacity of 171,000 cubic metres for the storage of gasoline, diesel, and jet fuel. A system of 18 loading bays will allow for fuel trucks, operating by fuel marketing companies, to be loaded in quick succession.

Al Mahruqi remarked: "Delivery of Orpic's MSPP project is in line with our strategic growth plan to revolutionize the way we operate our oil product logistics model - focusing on a higher standard of efficiency, lower costs, eliminating safety and security hazards, improving environmental footprint, and serving the Sultanate with pride."

Orpic Logistics, a joint venture between Orpic and the Spanish firm Compañía Logística de Hidrocarburos (CLH), is delivering the pipeline project.

Salvador Guillen, managing director of CLH, stated that though the Muscat Sohar Pipeline Project was ambitious, it had a "highly dedicated and professional team committed to delivering the project objectives", adding: "We are honoured to be part of Orpic's OLC project team and participate in such an important operation for Oman."

Orpic's pipeline project is split into four sections: MAF-Jifnain Terminal: 40-km (10 inches), JifnainTerminal-Airport: 30-km (10 inches), and Sohar-Jifnain Terminal: 220-km (18 inches) and Al Jifnain truck loading terminal.

The project is to include state-of-the-art control systems with latest SCADA technology, leak detection, and telecommunications network. It will also be equipped with loading facilities designed to cater to the loading of more than 500 trucks per day.