The State Trading Organisation (STO) expects to complete the project to double its fuel storage capacity within the first quarter of this year.
STO managing director Ahmed Shaheer said the majority of the project to increase its capacity in its fuel storage island in Funadhoo island near capital Male has already been completed.
According to Shaheer said the new fuel storage unit would be used from next month.
The storage on Funadhoo currently houses 40,000 tonnes of oil. STO has plans to upgrade the facilities used to load and unload fuel along with the island harbour.
The USD35 million project would also see STO purchase an oil tanker capable of carrying 25,000-30,000 tonnes of fuel.
Shaheer said the company had already been looking at vessels adding that a new tanker is expected to arrive in the next two months.
While noting that STO currently used charter boats to transport fuel, Shaheer said the new vessel would significantly cut-down costs.
STO also has plans to build smaller fuel storage facilities in the north and south of Maldives. The project to expand fuel reserves was launched in 2015.
