Ground-breaking for SLPG and ammonia plant on Monday
SALALAH: Oman Oil Company on Monday will lay the foundation stone for Salalah Ammonia Plant and Salalah Liquefied Petroleum Gas (SLPG) in the Governorate of Dhofar. The projects are strategically important for the development of the industrial sector and enhancing the economic diversification plans in the Sultanate.
The stone laying celebration will be held under the auspices of Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, Chairman of Oman Oil Company.
SLPG will cost $826 million, and will be developed on approximately 20 hectares of land within Salalah Free Zone. LPG and Condensate Storage Facilities will be built at the nearby Port of Salalah on approximately 8 hectares.
The project which has LPG extraction facilities at Salalah Free Zone is developed by Oman Gas Company, the pivotal company in midstream for Oman Oil Company. Petrofac of UK will implement the Engineering, Procurement and Construction (EPC) works.
The main LPG Extraction Plant will offer a processing capacity of around 8.8 million standard cubic metres per day. The plant will have local LPG truck loading facilities catering to domestic, industrial and commercial demand in the Governorate of Dhofar.
Together with a dedicated export jetty, Salalah Port will become an international LPG and condensate export hub beginning in 2020 when the project is fully operational.
The estimated cost for the ‘Ammonia Project’, supervised by Salalah Methanol Company, a subsidiary of Oman Oil Company, is $463 million. The project will stretch over 12 hectares at Salalah Free Zone. It will include facilities for production, storing and exporting the products of the ammonia plant. The construction works are expected to be completed by 2020.
The plant will manufacture 1,000 metric tonnes per day of ammonia. The plant will enhance the sustainability, increase the profitability and diversify the company’s product portfolio, through targeting its main market in India, Vietnam, Thailand, South Korea and Japan. The project is expected to pave the way for future opportunities to develop the processing industries.
The two projects come within Oman Oil Company growth strategy which seeks to enhance added value in oil and gas and petrochemical sectors, as well as maximising value from natural materials and resources.
Oman’s first liquefied petroleum gas extraction plant with a $826 million investment is designed to further unlock the economic and commercial potential of the Sultanate’s hydrocarbon resources