Work on Giant Sohar Petrochem Project to Start by Mid-2006

Source: Oman Observer 11/14/2005, Location: Middle East

The joint venture Oman Petrochemical Industries Company LLC (OPIC) will invest in a major gas extraction facility at Fahud, as well as in pipelines, power stations and downstream plants, as part of its vision to create a world-class petrochemical complex in Sohar. Details about the project, which will create an estimated 750 direct jobs and opportunities for downstream investment in plastics and related products, were unveiled at a conference attended by major equipment suppliers, here yesterday.

Development of the project, jointly owned by the Government of Oman (25 per cent), Oman Oil Company (25 per cent) and Dow Chemical Company (50 per cent), is progressing on several fronts. When operational in the second quarter of 2009, the plant will produce around 1 million tonnes of polyethylene, primarily for export into markets of the Asia/Pacific region.

“This is the largest investment currently in the Sohar region, and very intensive from the technology point of view,” said Bill Ray in comments to journalists. Sticklen added: “It ranks among the world’s mega-ventures, and is the biggest to be developed by Dow for several years.” Major construction work is slated to begin around May 2006 both at the upstream end at Fahud and at the Sohar Industrial Port.

Envisaged at Fahud is an Ethane Extraction facility that will extract the ethane component from natural gas to serve as feedstock for the main complex at Sohar. Additional gas for the project will come via a new 30-inch pipeline planned from Saih Rawl to the Fahud Extraction Plant. The extracted ethane component (lean gas) will be exported via a second 18-inch pipeline that will run some 300 kilometres to the Sohar site.

ABB Lummus has completed the basic engineering for the Fahud plant, which will be integrated with a new 150 MW power generation facility. The basic engineering for the pipelines have been carried out by the joint venture of ABB-Tebodin. At the Sohar Port, OPIC is preparing a 1.25 sq km site to house its main petrochemical complex. Envisioned is a Gas Cracker unit that will crack the ethane gas into ethylene which will be further processed into a variety of polyethylene grades by three huge polyethylene production units.

Technip is undertaking the basic engineering for the Ethylene Cracker, while Dow is carrying out the basic engineering work on two of the three production units. Design work on the third unit is being handled by Unipol Gas Base. Significant investment will also be made in the development of infrastructure and utilities for the petrochemical complex.

US Engineering firm Fluor has been appointed to undertake the basic engineering work on a 95 MW power generation plant at Sohar, which will provide steam for the complex. A giant silo farm comprising 40 silos will also be built to serve as a storage facility for polyethylene granules before the product is bagged and readied for export. Design work on this facility has been entrusted jointly to Zepellin and Dow.

Also as part of the infrastructure at Sohar, OPIC will need a marine terminal to handle the huge volumes of LPG and other hydrocarbons that will be generated as a result of the gas extraction and cracking processes. Incoming raw material for the project will also be handled by this terminal. Officials also stressed OPIC’s commitment to supporting Omanisation, and the use of local resources and contracting services, as well as the company’s determination to balance economic, environmental and social responsibilities.


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