Wednesday, 16 Oct 2019 | 17 Safar 1441
OOC lays foundation stone for Salalah LPG, Salalah Ammonia Projects

OOC lays foundation stone for Salalah LPG, Salalah Ammonia Projects

The ceremony was held beneath the patronage of H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas, chairman of Oman Oil Company, and was attended by quantity of their excellencies, honourables and officials from the government as effectively as representatives from the private sector.

The Salalah LPG project and the Salalah Ammonia project are each of national and strategic significance. These projects are anticipated to contribute considerably to the improvement of the industries in the Governorate of Dhofar, in addition to supporting the financial diversification vision of the sultanate. They reflect OOC’s development method to additional improve the added worth in the midstream and downstream of the Oil and Gas sector and contribute towards advancing current and future petrochemical industries in the sultanate.

Eng Isam bin Saud al Zadjali, chief executive officer of OOC, mentioned, “This is an important moment for us as OOC, where we continue to expand our investment portfolio locally, playing a vital role in being part of the Economic Zones across Oman. We, as an investment arm of the country, strive to develop and invest in successful and sustainable economic projects in the energy and related fields in Oman and abroad. Thus, such projects maximise use of local resources and job opportunities as well as enhance the leadership competencies in our country. The vision of the sultanate to promote investments in projects, in addition to supporting development plans aimed at diversifying sources of national income in the long term. Therefore, Salalah Liquefied Petroleum Gas (LPG) and Salalah Ammonia projects are part of Oman’s integrated development plan to diversify its investments.”

Highlighting the significance of Salalah LPG project, Sultan bin Hamed al Burtmani, acting executive managing director of Oman Gas Company (OGC), mentioned, “SLPG is a strategic and pivotal investment with far-reaching for Oman and thereby advancing the nation’s development in terms of economic development and securing LPG supplies to the governorate. The project will also help portray OGC’s role in utilising natural gas to develop various downstream industries and creating job opportunities for Omanis. We are excited to see the project moving ahead at a rapid and steady pace and on schedule.”

He added, “Salalah LPG has the potential to create a new energy hub in Salalah centering on the production of liquefied petroleum gas (LPG) – a commercially valuable, low-carbon and economically competitive fuel that enjoys growing demand in domestic and international markets”.

Awadh al Shanfari, managing director of Salalah Methanol Company, mentioned, “The Ammonia Project is a result of a wider plan to invest in the sustainable growth of the national downstream industries. This project paves the way for future opportunities in Oman for the development of downstream industries and thus, maximise their value addition. The project will also harness in-country value, with a strong focus on the development of local resources and engage the local supply chain.”

Salalah LPG exemplifies a longstanding endeavour by Oman Gas Company (OGC), a wholly owned business by OOC. The projects fall in line with the overarching strategic vision of the business, and hence, the establishment of Salalah LPG was announced, as a new creating block in its expanding portfolio of midstream assets. The plant is situated in the Salalah Free Zone adjoining the Port of Salalah, an essential transhipment and logistics hub on the Indian Ocean.

The Salalah LPG project is a strategic US$826mn investment, created on roughly 20 hectares of land inside Salalah Free Zone. The primary LPG Extraction Plant will provide a processing capacity of about eight.8mn normal cubic meters per day of gas – a capacity commensurate with planet-scale LPG plants. The UK-primarily based international contractor Petrofac was awarded a lumpsum EPC contract to construct the LPG extraction plant. LPG and Condensate Storage Facilities will be constructed at the nearby Port of Salalah on roughly eight hectares. The plant will have nearby LPG truck loading facilities catering to domestic, industrial and industrial demand in Dhofar.

Together with a committed export jetty, the Port of Salalah will turn out to be an international LPG and condensate export hub starting 2020 when the project is totally operational. Salalah LPG will efficiently contribute towards a competitive and sustainable nearby provide marketplace, and additional help the commitment to export trustworthy LPG gas.

Information Source: Muscat Daily

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