11 June 2011
MUSCAT -- Well-known Omani construction firm Galfar Engineering and Contracting has won a contract to build a pipeline that will link the refinery complex of Oman Oil Refineries and Petrochemical Industries (OmanOil RPI) with the methanol scheme of Oman Methanol Company (OMC), both located adjoining each other at the Port of Sohar.

The pipeline project will allow for the refinery to source its methanol requirements from OMC, thereby ending its dependence on methanol imports. Methanol is a key ingredient in the production of the octane-booster TAME (Tertiary Amyl Methyl Ether) which is used as an additive in the production of motor fuel.

Officials have described the pipeline link as a cost-effective alternative to imported feedstock, procured from international markets and shipped to Sohar by tanker. By switching to an indigenous source, Sohar Refinery is not only ensuring security of supply for its methanol needs, but is also demonstrating its commitment to supporting local industry.

Galfar's brief is to oversee the design, engineering, procurement, construction and commissioning of the pipeline project. The contract entails the installation of, among other things, a six-inch diameter pipeline, pumping facilities with a capacity to pump 60 cubic metres per hour of methanol product, isolation valves, safety relief valves, distributed control systems and fiscal metering facilities.

Galfar led a field of seven companies that submitted firm offers for the contract. Also in the fray were Larsen and Toubro (Electromech), Gulf Petrochemical Services, Indian Oiltanking, TRC Construction, Arabian Industries and Towell Infrastructure. With a six-month time frame stipulated for the completion of the project, the linkage is expected to be in place during the first quarter of 2012 allowing Sohar Refinery to receive a consistent supply of locally produced methanol for its refining processes.

Last month, OmanOil RPI signed a key contract that will pave the way for the revamp and expansion of its Sohar Refinery complex at an estimated cost of $1.5 billion. Under the contract, US-based international technology firm CB&I Lummus will undertake the Front End Engineering Design (FEED) and Project Management Consultancy (PMC) services package of the refinery expansion.

The expansion project, to be completed in 2015, is expected to improve the refinery's product quality and increase output by almost 60 per cent. It will also generate ample employment opportunities for the local community.

© Oman Daily Observer 2011