SMC to explore potential for downstream projects

VALUE ADDITION: Opportunities for urea, DAP and fertiliser based investments to be studied in future

The wholly government-owned Salalah Methanol Company (SMC), which signed agreements last month for the addition of an ammonia plant to its world-scale methanol scheme in Dhofar Governorate, says it will weigh opportunities for developing projects further downstream of its current investments in the Salalah Free Zone.

Among the options that hold particular promise are investments in fertiliser and urea projects utilizing part of the liquid ammon ia output set to begin flowing from the expanded Sa la lah Methanol scheme by late 2020, a high level official said.

Downstream value addition that harnesses the ammonia output of the expanded project is an integral part of SMC’s long-term objectives, said Awadh al Shanfari (pictured), Chief Executive Officer.

“This is actually our dream; As part of our planning for the future, we hope to see further downstream activities, perhaps in fertiliser production. We hope one day we have enough feedstock of gas to see either urea, DAP (diammonium phosphate) or other fertiliser in production.”

The official was speaking to the Observer soon after participating in ceremonies marking the financial close for the Salalah ammonia project on August 28. SMC, a wholly-owned subsidiary of Oman Oil Company’s Takamul vertical, successfully secured a 12-year $728 million recourse project finance facility from a mix of international, regional and local financial institutions. The facility will be used to refinance SMC’s existing debt, while the remaining $443 million to be allocated to the development of the ammonia plant.

Underscoring the competitiveness of the ammonia