OCTAL Petrochemicals and Port Of Salalah ink cooperation accord

12-Mar-09

In a contract that covers development of the region's first liquid chemicals terminal, senior management of the Port of Salalah and OCTAL Petrochemicals have signed an agreement on storage and transport of chemicals at the port. The contract oversees the ongoing development of Salalah's first liquid chemicals terminal which will support OCTAL's production capacity expansion and further raise the profile of the port as a regional hub for cargo. Under the agreement, OCTAL will have a dedicated berth to receive tanker shipments and build specialized facilities to pipe liquid chemicals underground to its manufacturing plant in the Salalah Free Zone. The chemicals will be transported via a US$50 mln purpose-built terminal or 'tank farm' within Port of Salalah. The agreement also covers the leasing of land on which the terminal is being built. Two tanks for receiving mono-ethylene glycol (MEG), each with a capacity of 5,000 cubic metres, have already been completed. A third tank for MEG will be delivered by the middle of next year. By 2011, the terminal will comprise of 9 tanks, 3 for MEG and the remainder for other liquid chemicals. The piping and supporting infrastructure for the tank farm is already operational. The new facility is protected by advanced fire fighting equipment and meets all the health, safety, security and environmental (HSSE) regulations of the Royal Oman Police.