China and Iran Zero-in Oman Massive New Oil Storage Project | OilPrice.com

Oman occupies a strategic position along the Gulf of Oman and the Arabian Sea, far from the most politically vulnerable Gulf of Hormuz in the Middle East.

These provide unrestricted access to markets in South Asia, West Asia, Africa, and the Middle East. The key project in Oman is the Ras Marcaz Oil Park, which the government said last week was the final stage of a project to store more than 200 million barrels. Crude oil in Ras Marcaz for easy transportation to the sellers and buyers of the world.

As part of Oman’s three-pronged strategy to create such an important strategic location for such a property, as well as to create a world-class petrochemical sector, China is engaged in self-regulation. Key Cog is a multi-generational energy reduction program, ‘One Belt, One Road’. Salim al-Hashimi, general manager of Oman Tank Terminal, Ras Marcaz project manager for Oman Tank Terminal, said last week that the park will have 25 million barrels by the first quarter of 2022. Up to 200 million barrels a day, there will be a steady increase in storage capacity.

The tanker will receive the oil through ships up to 7 km inland and 3.5 km inland. There are also plans to link the plant to Oman’s oil fields, said Ard Van Huff, chief executive of Oman Tank Terminal. Oman is currently shipping the waste through the Mina al-Fahl terminal in the Persian Gulf, but the presence of a second export facility in Ras Marcaz will help the country cope with surplus production.

That said, Oman’s hopes for oil wealth seem bleak. The Sultanate currently has a proven oil reserves of less than five billion barrels – just 22 degreesD The largest in the world. Although the government has said it will increase its oil production to 1.1 million bpd after the end of the current OPEC + deal, the sultan has made it clear in the general process that in the fourth quarter of 2020 it will offer a $ 2 billion sovereign bond. In the reserve stock, future growth is limited and there is a long-term slowdown in oil production. It is true that Oman managed to maintain only 1 million barrels of BDP per day for two consecutive months last year (March and April), but since then the figure has returned to normal at about 900,000 bpd and significantly lower, especially around 720,000 bpd in December. .

This lack of primary hydrocarbon resources makes it very important that the Marcaz oil storage park is available online as soon as possible. This is because not only is the Ras Marcaz storage facility an important source of government revenue for the future, but it is also one of three major components of Oman’s great economic prospects: a multi-level Duke refinery and a petrochemical project. ) it is. The $ 336 million U.S. pipeline was completed in late March 2018, and now connects the Mina al-Fahl and Sohar filters to Al Gifini’s medium distribution and storage facility. Divided into three sections – 45 km between Mina Al-Fahl and Al-Gifayin Terminal, 220 km between Sohar and Al-Gifayin Terminal, and 25 km between Al-Gifin Terminal and Muscat International Airport – the project needs to be extended. . 70% of Oman’s oil is stored in a state-of-the-art storage facility.

The final part of the plan for the Ras Marcaz Oil Storage Park for the 230,000 bpd Dukem refinery and petrochemical project – for Oman O.O.O. Connected to an 80-mile[80 km]pipeline. The Dukem Filter and Petrochemicals Project, which is the subject of a number of roadblocks in planning and a number of issues, is expected to begin in 2022. Of Kuwait, the remaining 35 percent are from Oman sources.

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Part of this overall push is to bring the $ 6.7 billion Liva Plastics Industries Complex Project (LPIC) fully online. The sugar refinery, aromatic plant, polypropylene and steam cracker unit in Sohar is intended to be one of the world’s most integrated refining and petrochemical services for LPIC, Complex. It is expected to contribute two percent to the country’s gross domestic product (GDP). Once in production, the factory is expected to produce 1.4 million tons of polymers – about 400 containers per day – and the ultimate goal of this strategy is to significantly increase polyethylene and polypropylene exports to Asian markets, especially China. Prior to the global epidemic of COVID-19, industrial estimates for both polymers would increase by about 5 percent per year, with at least 180 million metric tons in total by 2023, mostly to China.

This is not the only Chinese or OBOR estimate behind Beijing’s growing efforts in recent years to lay the groundwork for Oman’s growing list of Middle Eastern assets. Talks between Tehran and Muscat have resumed in recent days. LNG Superman Based on a giant unrelated gas field in South Persia. 25 percent of Oman’s 1.5 million tons of LHG production capacity

This could be part of a larger plan to build a 192-kilometer 36-inch 36-inch pipeline from the Mobach Mountains up to 1,340 meters deep in the southern province of Hormuzgan in Iran. Exporting gas. Oman-based LNG supply will also serve as the starting point for the game-changing Iran-Pakistan-China pipeline on OBOR. The Iran-China axis is another very important combination of this direct route from Iran to Oman Sanctioned Gore-Jasque Pipeline At least 1 million barrels of oil a day is being transported from the main oil fields to Gore in the Gulf of Oman to the port of Hormozgan in the Gulf of Oman.

Beijing has invested in a number of strategic projects related to the Dukem refinery and petrochemical project. China, which already owns about 90 percent of Oman’s oil exports and most of Pethem’s exports, has used this to sign a $ 10 billion Duke oil refinery. Following the implementation of a nuclear deal with Iran in early 2016. This will initially focus on completing the Dukem refinery, but the package will include the Dukem refinery supplied by the Dukem refinery at the Dukem Port Production Terminal and Ras Marcas Oil Storage Park.

Chinese money is also being built and constructed from the 11.72-square-kilometer industrial park in Dukem in three areas – heavy industry, light industrial and mixed use. According to the plans, all of them will be ready in the next 10 years, according to Beijing. The hybrid sector will focus on projects designed to improve Omanis’ infrastructure, $ 100 million for the construction of a hospital, and $ 15 million for schools. The heavy industry sector covers 12 projects related to the production of 12 methanol and other chemicals.

By Simon Watkins for Oilprice.com

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