Oman Will Drive Growth for Oil Storage Industry in ME: Report

Oman and Iran will drive the majority of growth in the oil storage industry in the Middle East between 2018 and 2022, contributing more oil storage capacity than any other country in the region, according to leading data and analytics company GlobalData.

In a report titled ‘Oil storage industry outlook in Middle East to 2022’, GlobalData said that in 2017, the Middle East region had an oil storage capacity of around 80 Mcm, which accounted for 5.9% of total global oil storage capacity.

According to the report, the Middle East region is expected to have a total planned storage capacity of 14.93 Mcm by 2022, and will account for 22% of global planned storage capacity. The region is expected to increase storage capacity from 80 Mcm in 2017 to 95.83 Mcm in 2022 at an average annual growth rate of 3.6%.

GlobalData said among countries in the Middle East, Oman leads in terms of capacity additions of new oil storage projects. It said Oman has planned investment of around US$1.31 billion by 2022. The sultanate’s oil storage capacity is expected to increase from 1.65 Mcm in 2017 to 7.3 Mcm in 2022, at an average annual growth rate of 29.6%.

“Oman is expanding its oil storage capacity to increase crude oil and petroleum products exports from the country. New storage terminals are being planned along its coastline for easy access to the oil markets in South Asia, Africa, and Far East,” Soorya Tejomoortula, oil and gas analyst at GlobalData said.

The report said that an estimated capital expenditure of US$6.9 billion on new build projects is anticipated in the Middle East between 2018 and 2022.

GlobalData has identified Iran as the second highest in the Middle East in terms of capacity additions and the highest in terms of capital expenditure on new build oil storage projects for the outlook period from 2018 to 2022. It said Iran has planned investment of around US$2.3 billion and plans to increase storage capacity from 8.75 Mcm in 2017 to 13.74 Mcm in 2022 at an average annual growth rate of 9%.

Tejomoortula added, “Iran is planning to construct three oil storage terminals between 2018 and 2022 which will help the country to boost its crude oil exports.”

In terms of capacity, Jask in Iran, Ras Markaz Crude Oil Park terminal in Oman, and Al Muajjiz terminal in Saudi Arabia are the top three planned and announced oil storage terminals by 2022, the report added.