Sohar Port to spend $220m on free-zone expansion

Oman’s Sohar Port has taken out a $220 million loan to expand its free zone with a new clean marine fuel project and bunkering facilities. 

Sohar Port signed the loan with Oman Arab Bank to expand the second phase of its free zone that will cover 44.5 hectares of land after the first phase reached full occupancy. 

The expanded free zone will accommodate the new $1.6 billion Al Marsa liquefied natural gas (LNG) project, Oman Television said.

The second phase expansion will also be the site of a new bunkering facility to supply fuel to anchored vessels. 

“The expansion of the free zone is important and will play a key role as a driver of sustainable trade and investment in Oman in partnership with foreign investors,” Salim Al Aufi, Minister of Energy and Minerals, told Oman Television. 

He added that the expansion will increase annual throughput by 30 percent to more than 2.5 million tonnes of cargo.

Marsa LNG will have an annual production capacity of around one million tonnes. The project will be fully powered by a dedicated 300 megawatt solar plant, enabling zero-carbon operations and supporting Oman’s clean energy transition. 

TotalEnergies of France holds an 80 percent stake in Marsa LNG while state-run oil and gas exploration and production company OQEP has the remaining 20 percent. 

Further reading:

• Danish company to build power stations at Oman port
• Work starts on Oman-UAE $2bn economic free zone
• Oman to invest $260m in logistics to spur growth

According to its latest public fact-sheet, Sohar Port and Freezone occupies about 4,500 hectares and says it has drawn close to $30 billion of investment since inception. 

The port has previously recorded cargo throughput of over 69 million tonnes in a single year, and in the first half of 2025 handled 34 million tonnes, underscoring its role as Oman’s largest industrial-logistics hub.

Located in northern Oman, Sohar Port is a deep-sea port and is an equally-owned joint venture between the Omani government and the Port of Rotterdam.