OLC, a subsidiary of CLH, starts the construction of a pipeline and a storage facility in Oman

The company will invest more than 300 million dollars in the execution of the project

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.

CLH and Orpic

Compañía Logística de Hidrocarburos CLH is the leading company in Spain for oil product transportation and storage, and has a pipeline network of over 4,000 kilometres and 39 storage facilities, with a total capacity of 8 million cubic metres, as well as 28 airport facilities located at the main Spanish airports.

Internationally, CLH is present in the United Kingdom through CLH Pipeline System (CLH-PS) Ltd, a logistics company that provides its services to several military facilities and some of the main airports in the United Kingdom. It has a pipeline network of 2,000 kilometres, which represents 50% of the British pipeline network, and 16 storage facilities with a total capacity of over one million cubic metres.

As for Orpic (Oman Oil Refineries and Petroleum Industries Company), it is one of the main companies in Oman and owns two refineries in that country, located in Muscat and Sohar. Orpic is owned by the Government of the Sultanate of Oman and by Oman Oil Company SAOC, the company incorporated by the Government of the Sultanate of Oman to manage investments in the energy sector. This company has also been a shareholder of CLH since 2003 and currently holds a stake of 10%.