Integrated industrial ecosystems on Oman’s shore

Oman

Reggy Vermeulen, CEO of the Port of Duqm, talks to The Energy Year about how the port is helping achieve Oman’s decarbonisation goals and the main sectors being prioritised for development. The Port of Duqm is an integrated, multimodal logistics hub with maritime links, a road network, an airport and a railway system.

What are the latest developments at the Port of Duqm?
At the Port of Duqm, our core value lies in the unique combination of vast available land directly adjacent to port infrastructure and a clear roadmap to decarbonise the industries we host. This year, our strategic priority has been attracting large-scale industrial players, particularly those with high energy demand and strong decarbonisation potential.
Duqm acts as a bridge between Oman’s carbon-based economy and its green transformation, offering logistical efficiency and a future-ready energy framework, including green hydrogen and carbon-capture initiatives.
We co-ordinate closely with the special economic zone to ensure optimal land use, placing industries inside or outside the port based on their operational dependence on immediate port proximity. Our integrated approach ensures that development is collaborative rather than competitive. It’s about building the right ecosystem together.

What are the main sectors you are prioritising for development?
Our focus is on three interconnected pillars: oil and gas, green energy and steel. We support upstream oil and gas to make it more efficient, downstream to drive value, and we’re actively launching the low-carbon steel industry with all its supporting components. These aren’t separate; they reinforce each other. We don’t only support steel for its own sake, but because it enables the hydrogen economy through decarbonisation. The moment you enable green steel, you trigger demand for hydrogen and catalyse other clean industries. This interconnectedness defines our strategy. We serve all sectors that contribute to building Oman’s integrated, low-carbon industrial future.

What is the Port of Duqm’s role in supporting Oman’s 2050 hydrogen export targets?
Our role in Oman’s hydrogen roadmap is to provide the critical infrastructure that enables export and industrial use. We ensure the port is ready for large-scale export operations and support the government in attracting international offtakers and downstream industries.
While production sites such as Hyport are located south of the port to accommodate solar and wind installations, all export infrastructure is concentrated within the port.
We’re also working closely with Oman Gas and Fluxys to build a shared national hydrogen infrastructure, mirroring the European model, with our focus on the final segment from the internal network to ship loading.

Do you see the Port of Duqm eventually competing with Marsa LNG in the marine fuel space?
We’ve partnered with Oman Shell and other players to develop low-carbon bunkering capabilities, with a long-term vision focused on hydrogen-based fuels such as ammonia and methanol. Realistically, we’re targeting 2030 for that full transition, starting first with hydrogen availability. In the interim, we’re working to offer cleaner alternatives such as low-sulphur fuels, and potentially LNG for ship fuelling, though that’s still being evaluated.
This isn’t about immediate export but about fuelling vessels, similar to what Marsa LNG is planning. We’re monitoring Marsa’s rollout closely to assess market demand; if the space can support a second player, we’re ready to step in.

What role is the Port of Duqm playing in Oman’s growing mineral exports?
Alongside green hydrogen, minerals represent one of Oman’s most promising untapped resources, and the Port of Duqm is positioning itself as a central hub for their development. We’re already active in exporting limestone and dolomite – high-volume, low-margin cargo essential to steel, cement, pharma and infrastructure – and we aim to reach 3-4 million tonnes of dry bulk in the near term, while we can scale to 10 million.
What’s especially exciting is the emerging potential of silica sand. This is critical for semiconductors and electronics, with promising reserves near Duqm. We’re working to either export refined silica or attract downstream industry to the port.
We also see hybrid models, such as Vale’s, as the future. They bring raw materials to Duqm and either export regionally or attract downstream clients onsite. We aim to become a multi-product, multi-hub platform that anchors mineral value chains for both export and domestic industrialisation.

How do Sohar and Duqm complement each other?
Sohar is a mature hub, but it lacks the space for full value chain integration. In Duqm, we offer large, contiguous land where upstream and downstream plants can sit side by side, enabling faster, more efficient operations, especially for industries such as green steel. We’re not competing with Sohar. We’re complementing it by offering what it can’t, namely, room to build integrated, next-generation industrial ecosystems.

What infrastructure developments are underway to support future industrial growth?
We recently signed a USD 550-million agreement with AIIP [Investcorp Aberdeen Infrastructure Partners] and DEME to prepare the infrastructure in our second basin, which is directly tied to the Mitsui-Kobe Steel project. This agreement includes dredging, building new quay walls and installing platforms to handle high-volume cargo.
Duqm currently has more than 5,000 hectares [50 square kilometres] and two basins, so we have significant headroom. Basin two will at least double our current capacity, and with projects from Vale, Mitsui and Jindal progressing,
Duqm’s edge is flexibility. Unlike congested hubs, we’re developing a multi-industry platform spanning steel, liquids, renewables and ship repair, all in one integrated layout. That’s why, as global investors seek stable ground amid geopolitical turmoil, Duqm is drawing serious attention.

What are your top three strategic priorities for Duqm’s development?
The first is to launch the integrated steel industry in Duqm, which will have a major snowball effect across the value chain and will accelerate demand for green energy.
The second is to ensure the hydrogen industry can rely on us, so when offtake agreements in Europe are signed, we’re fully ready with infrastructure. This confidence is crucial for unlocking financing and commitments.
Third, we’re building on our momentum in minerals by advancing into silica, a promising new segment for Oman’s industrial growth.

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