Oman to invite bids on $3.5bn petchems plant

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Oman plans to invite bids to build a steam cracker plant worth $3.5bn with a production capacity of 1 million tonnes a year of petrochemical products, two sources close to the project said on Tuesday.

The planned cracker would be built in the northern industrial port city of Sohar and produce polypropylene and polyethylene, which are used in making plastics.

The project will include building a 300km pipeline, a gas extraction plant and headquarters buildings, one industry source, speaking on condition of anonymity, told Reuters.

State-owned Oman Oil Refineries and Petroleum Industries Co (Orpic), which owns oil refineries in Sohar and Muscat, will finance the new steam cracker. A spokesman from Orpic declined to comment on the project.

A second source said bids would be invited next month and the project was scheduled to be completed in 2016.

"By then, the Sohar refinery's expansion will be completed because 50 percent of the feedstock for the steam cracker will come from this refinery," he said.

Oman is expanding the capacity of the Sohar refinery to 180,000 barrels per day from the current level of 116,000 bpd. The Gulf state has another refinery in Muscat producing 106,000 bpd. It also plans to build a 230,000 bpd refinery at Duqm.

Orpic is also designing a 280km pipeline to carry refined products between Muscat and Sohar.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Facelift or folly: Belgrade braces for Dubai-style makeover

Facelift or folly: Belgrade braces for Dubai-style makeover

Construction for the Belgrade Waterfront project is due to kick...

How potential loopholes could limit impact of Saudi land tax

How potential loopholes could limit impact of Saudi land tax

Move aims to help the government meet promises to build 500,000...

Top 40 most powerful architects in the Middle East

Top 40 most powerful architects in the Middle East

Our annual shakedown of the region's 40 most influential and...

Most Popular
Most Discussed