SMC to explore potential for downstream projects

FROM P13 project, hydrogen-rich purge gas which is a byproduct of SMC’s methanol production, will be combined with nitrogen gas from the atmosphere to produce ammonia. Plant capacity is sized at around 1,000 metric tonnes per day of anhydrous liquid ammonia, which is presently destined for export under an offtake agreement concluded with Oman Trading International (OTI), a subsidiary of Oman Oil Company.

Besides being used as an ingredient in the production of fertilizers, ammonia is also an important intermediate chemical in the manufacture of synthetic resins (urea based), synthetic fibres (acrylics and nylons, and polyurethanes, among other applications. According to Al Shanfari, international engineering and construction giant SNC-Lavalin is currently mobilising ahead of the start of its contract to execute the ammonia project on an Engineering, Procurement and Construction (EPC) basis later this year.

“We are now in the detailed engineering stage, and we hope to break ground on the project in November,” the CEO said.

Commenting on the employment generation potential of the project, Al Shanfari said the new investment will help create around 50 direct jobs, while contribute to a multi-fold increase in indirect jobs.

Asked about the potential for biofuel production based on SMC’s product streams, the CEO added: “We are not thinking about it in Oman at the present moment, but we hope it will cross our minds in the future.”