Refining & Petrochemicals Middle East
OQ signs MOU with SABIC for setting up petrochemical projects in Duqm
Oman’s OQ Group has signed a memorandum of understanding (MOU) with Saudi chemical giant SABIC to study the development of a petrochemical project in the Special Economic Zone of Duqm (SEZD).
The signing of MOU coincides with the visit of the Saudi Crown Prince Mohammed bin Salman to Oman.
The project involves a world-scale steam cracker unit (SCU) and derivatives units producing olefins derivatives (ethylene and propylene) are expected to utilize the feedstock by-products from the SCU.
The agreement was signed by Talal Bin Hamed Al Awfi, CEO of OQ Group and Abdulrahman Al-fageeh, Executive Vice President for Petrochemicals a SABIC.
“OQ aims to enhance the integration of the refinery and petrochemical industries with other downstream industries as part of its vision to maximize the added value and contribute to the development of downstream industries,” said Al Awfi.
“We look forward to enhancing our strategic partnership with SABIC and benefiting from its expertise to carry out this project,” he added.
Separately, OQ also signed a non-binding with Aramco
Trading Company’s (ATC) for jointly exploring commercial opportunities in the energy sector.
Following the MOU, both companies intend to collaborate directly or through their affiliates on exploring business prospects in the Omani port of Duqm and nearby crude oil storage terminal of Ras Markaz.
ATC and OQ may expand the scope of the MOU to include product storage, renewables, waste stream, green ammonia as well as green hydrogen. Aramco Trading Company (ATC) is the trading arm of Saudi Aramco that trades crude oil, refined products, LNG and LPG, blending components, bulk petrochemicals, and polyolefins.
In order to reach out to a wider customer base and capture trading opportunities, ATC strategically maintains storage and blending facilities in major trading hubs, customizing product specs to meet customer demand.