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.

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