Operations are targeted to commence by 2020, a statement from the Omani Sohar Port and Freezone said.
Sohar Port and Freezone is managed by Sohar Industrial Port Co, a joint venture between Port of Rotterdam and Oman.
Trescorp is gearing up to launch a new 45-hectare terminal at the Sohar Port South, a recently announced land reclamation project designed to create more space for industry.
The new facility will feature six deep-water berths, with a 25 m draft, which will be capable of receiving VLCCs.
In the first phase, the terminal will be equipped to receive, store and blend crude oil, fuel oil and diesel. Construction of phase one will commence next year, with an initial storage capacity of 600,000 cu m, with future expansion planned to take the total storage capacity up to 1.8 mill cu m.
Expansion plans for phase two include gasoline blending, jet fuel, asphalt and a lube oil blending plant.
Five hectares of the new development will also be allocated for the development of a lubrication park that will blend various grades of lubricating oil products, including marine grade lubricants.
Product supply will include bulk delivery using luboil barges to tankers bunkering in Sohar, while road tanker access to the new facility is also being planned.