INTERVIEW: OOMCO Sees Duqm Bunker Demand Growing to 15,000 MT/Month

El Kati is senior manager for marine and bunkers at OOMCO. Image Credit: OOMCO

Bunker demand at the newly-established marine fuels supply location of Duqm is set to grow to 15,000 mt/month, according to the Oman Oil Marketing Company (OOMCO).

The company launched a new bunker terminal at the Omani port late last year, attempting to position it as an alternative Middle Eastern marine fuels hub.

The firm has seen growing interest in the location since then, Christophe El Kati, senior manager for marine and bunkers at OOMCO, said in an interview with Ship & Bunker.

"The demand for bunker supply at Duqm is there, and we are pleased to say it is steadily growing, as forecast," he said.

"We have fixed some stems for the coming weeks, and we are looking to purchase our next batch of refinery cargo.

"In the short term, as we develop the demand, we look forward to supplying around 12,000 to 15,000 metric tonnes per month during this first phase of operations."

Longer-Term Demand

In the longer term, the firm sees demand tripling from that level as the port develops.

"The Port of Duqm refinery will have the capacity to process 230,000 barrels of oil per day when it is completed, while the petrochemical complex and Ras Markaz Terminal will also be fully operational by 2026," El Kati said.

"With the port offering a wider array of services to meet the needs of local and international vessels, we see the Port of Duqm as a place for growth.

"For instance, OOMCO's bunker terminal is co-located in Duqm with a container feeder service coordinating with the ports of Salalah, Sohar and Jebel Ali, and one of the largest ship repair yards in the world belonging to the Oman Drydock Company.

"Duqm also has dry-bulk and container capabilities on its 2.2km commercial quay, as well as being a logistics hub for the UK's Royal Navy.

"Duqm has real potential as a fully-fledged shipping hub, as well as a strategic bunkering location for international shipping, given our proximity to east-west shipping lanes.

"As such, in the longer term, we anticipate there will be considerable traffic in the port region that we would cautiously forecast could support supply of around 40,000 to 50,000 tonnes per month."

Fujairah is currently the Middle East's largest bunkering hub, with 8.17 million mt -- or about 68,000 mt/month -- of marine fuel sales last year.

Supply Chain

The long-term plan is for the port to be supplied with marine fuels by the Duqm refinery as it comes online in 2023, with its proximity meaning prices will be competitive with other hubs.

"Until then, our fuel will primarily be sourced from refineries in the Mediterranean or Fujairah," El Kati said.

The port's bunker customers are currently served by the 10,000 mt capacity barge MT Alpha.

"OOMCO intends to be present in all ports in the Sultanate of Oman, including Sohar and Sultan Qaboos on the Oman Gulf coast," El Kati said.

"This approach will certainly create opportunities to grow our fleet across all these locations where we can offer bunker supply, so we are sure we will be expanding the number of barges in operation, including at the Port of Duqm in future."

Alternative bunker fuels may also become available at the port before long.

"OOMCO is guided by the Oman Vision 2040, which aims to develop a sustainable economy for the nation, in economic well-being, and environmental terms," El Kati said.

"The Vision sets a direction in natural resource management that will develop non-traditional natural resources.

"Alternative fuels are part of this strategy, and we will be looking to play our part in serving Oman's shipping sector.

"In the Sultanate, we already have LNG and methanol production facilities, and two ammonia plants are being built in the coming years.

"In the near future, we will be able to supply these greener alternative fuels at Duqm."