MOSCOW (MRC) -- Compania Logistica de Hidrocarburos CLH, S.A. has signed an agreement with the Omani company Oman Oil Refineries and Petroleum Industries Company (ORPIC) for creating a joint venture that will invest 200 million dollars in the construction and operation of new logistics infrastructures in Oman, said Noodles.
The new company, in which CLH and ORPIC will hold a 40% and 60% stake, respectively, will be called Orpic Logistics Company (OLC) and it will be responsible for the construction and management of a storage plant in the vicinity of Muscat, the capital of Oman, and a multi-product pipeline network that will connect the new storage plant to the two refineries existing in the country and with Muscat International Airport.
The new pipeline network will have a total length of 290 kilometres and will make it possible for more than 5.4 million cubic metres to be transported. It will also be reversible, meaning that a highly flexible logistics system will be provided. The development and start-up of the infrastructures will be gradual. The first section of this pipeline network will consist of building the connection between the refinery in Muscat and the international airport, and is expected to become operational during the first half of 2016.
On the other hand, the new storage plant will have an operating capacity of more than 170,000 cubic metres and will be fitted with 18 loading racks for expediting supply to the various distribution companies operating in Oman, and is expected to become operational in the first half of 2017, as is the pipeline for connection with the Sohar refinery.
The building of these new infrastructures, in which CLH's broad experience in managing these types of logistics systems will be applied, will bring significant benefits to Oman, as it will permit increased security of oil product supplies and will reduce the use of tank trucks for transporting fuels by road. Besides this, it will mean that the costs of oil product transportation and distribution in the country can be optimised.
Compania Logistica de Hidrocarburos CLH is the leading company in the Spanish market for the transportation and storage of oil products, with a pipeline network more than 4,000 kilometres long, and 39 storage facilities, with a total capacity of 7.9 million cubic metres, in addition to 28 airport facilities.
ORPIC (Oman Oil Refineries and Petroleum Industries Company) is one of the leading companies in Oman and has two refineries in that country, in Sohar and Muscat. ORPIC is owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC, the trading company created by the Government of the Sultanate of Oman for managing investments in the energy sector. We remind that in late 2012 Orpic announced that its production of world class high quality polypropylene homopolymer at Sohar plant has crossed 1 million tonnes. This was a significant milestone for the polypropylene (PP) plant in Sohar, which began production in October 2006.
MRC