Under the auspices of H.E. Sultan bin Salim Al Habsi, Secretary-General of the Supreme Council for Planning and Chairman of Orpic Board of Directors, Orpic celebrated the ground breaking of Liwa Plastics Industries Complex (LPIC) Project. The USD 6.5 billion project, LPIC is the largest of the three strategic growth projects undertaken by Orpic to fulfil its vision of building an Omani integrated refining and petrochemical business. This project will be the first-of-its-kind in the Sultanate and will enable Oman support a downstream plastics industry.
Commenting on the ground breaking, H.E. Sultan bin Salim Al Habsi, Chairman of Orpic Board of Directors said, “We are delighted to celebrate the ground breaking of an important and a vital project which is needed to keep up with the development in the Sultanate. This project will contribute to enhance the petrochemicals industry in the Sultanate and keep pace with the growing demand for plastics in the Sultanate and the region. We hope that this project will contribute to the improvement of environmental aspects and support the creation of a downstream plastics industry in Oman.”
Musab Al Mahruqi, CEO, Orpic explained that LPIC is the largest project undertaken in Oman and the largest ever in the region to date. Explaining the significance of this project, he said, “To achieve our vision of building an Omani integrated refining and petrochemical business we are proud of, we must support opportunities to grow our people, our business and our capacity to meet the needs of Oman and international markets.”
“We are confident that once Plant commissioning is completed in 2020, LPIC will change Orpic’s product mix by extracting more value from natural gas and crude oil. Being located in Sohar as part of an integrated complex that houses also Sohar Refinery, Aromatics Plant, Polypropylene and Steam Cracker Unit for LPIC, Orpic operations will be one of the most integrated refinery and petrochemical operations in the world and will enable the company to extract the maximum value from Oman’s oil and gas,” he continued.
Last year, Orpic awarded four contracts for Engineering, Procurement and Contracting (EPC) packages worth USD 4.5 Billion for Liwa Plastics Industries Complex (LPIC) Project to:
- EPC 1 (Steam Cracker and Utilities): CB&I and CTCI Corporation Joint Venture
- EPC 2 (Plastics units): Tecnimont S.p.A
- EPC 3 (NGL Extraction): GS Engineering and Construction and Mitsui & Co. Ltd Joint Venture
- EPC 4 (NGL Pipeline): Punj Lloyd Ltd
LPIC plays a strategically important role in the integration of Orpic’s refinery and petrochemical operations. LPIC will enable Orpic to utilize the existing products of the refineries and Aromatic plant which are currently being exported as feedstock for LPIC in addition to Natural Gas Liquids leading to producing high value products that will help Orpic double its profits. In addition to creating SME opportunities, this project will deliver numerous social, economic and environmental benefits including job growth, contribute to Oman’s GDP by roughly 2% and support the downstream plastics industry.
LPIC is one of three strategic growth projects being delivered by Orpic namely Sohar Refinery Improvement Project (SRIP - 2016), Muscat- Sohar Pipeline (MSPP - 2017) and Al Jifnain Terminal. These projects will cement Orpic’s position as a market leader in Oman, the Middle East and the international oil and gas sector.
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