Oman Tank Terminal Company (OTTCO) is contemplating another vessel at its floating storage facility following strong demand for capacity.
Speaking at Platts European Oil Storage Conference in Amsterdam, Said Al-Maawali, project director at OTTCO said that the first floating storage contracts have been signed at the facility, located at Mina Al Fahal.
He told delegates that the 2.1 million barrel capacity floating storage facility will help evolve the company into a crude hub.
Currently, China Oil, Glencore and Oman Trading International have won bids for access to the facility on the VLCC, which will be provided and operated by Oman Shipping Company.
He says: ‘We are now contemplating another ship. There is clearly demand from the exercise we have done.
‘It is a unique service offering. It makes OTTCO the first company to provide floating storage linked to an energy futures contract.
‘It enables buyers to store their oil and optimise market conditions. It offers flexibility, reliability and allows investors to come in.’
The facility is an interim storage solution ahead of the Ras Markaz Crude Oil Park. The first phase, which will comprise 25 million barrels of storage, is expected to be ready by the end of 2019.
Al-Maawali says that the company wants to grow from floating storage, to landbased storage, through to becoming a crude oil hub.