21 May 2011
MUSCAT: The proposed expansion of Sohar Refinery is expected to boost production of adjoining downstream petrochemical industries.
"The additional feedstock requirements of both Aromatics Oman and Oman Polypropylene will be met through this expansion. This will boost our petrochemical production, especially in Sohar industrial area," Mohammed bin Hamed Al Rumhy, Minister of Oil and Gas, told reporters, after signing an agreement for front-end engineering design (FEED) and project management consultancy (PMC) with CB&I Lummus B V here yesterday.
The pact was signed on behalf of Oman Oil Refineries and Petroleum Industries by Al Rumhi and Scott Wiseman, vice-president of CB&I Lummus. These contracts are linked to a massive expansion of Sohar Refinery to take the total refining capacity to 187,000 barrels per day (bpd) from 116,000bpd now. The expansion project, with an estimated capital expenditure of $1.5 billion, will be completed in 2015.
Elaborating on the new product streams, Al Rumhy said, "We are planning to start production of asphalt to meet the growing demand for road construction. There could be a possibility of using the same in insulation and water proofing purposes as well."
"We are currently negotiating with one or two investors who want to use paraxylene from the Aromatics project. So that we will have value addition and more employment opportunities," he added.
He said the Ministry of Industry and Commerce is also trying to attract investors for building downstream industries.
"This occasion marked the beginning of further investments in the highly valuable hydrocarbon refining and manufacturing business in the Sultanate," the minister said, adding; "This large scale industrial investment by the government will provide added value to the refinery and petrochemical assets in the Sohar Port area."
The Sohar Refinery expansion project, through its projected contribution and forecasted benefits, will align well within the path paid out for the Oman 2020 vision toward diversification of the Omani economy. "This is a major investment, which will benefit the Sultanate and the Batinah region for many years to come."
"The objective of the expansion project is to increase the production of petroleum products, such as, LPG, naphtha, Jet A-1 fuel, gasoline, diesel and propylene. The additional petroleum products will meet the growth of local demand, and further enhancing Oman's exports of petroleum and petrochemical products," noted Musab al Mahruqi, Group Chief Executive Officer of Oman Oil Refineries and Petrochemical Industries.
"Additionally, this project will produce bitumen to meet the demand of the local market and eliminate the need for bitumen imports," added Al Mahruqi.
Al Mahrouqi said it is expected that the engineering, procurement and construction (EPC) contract will be floated in the first quarter of 2012, culminating in the commissioning and on-stream operations of the refinery units in 2015.
Several specialised contracts were awarded earlier this year to internationally-renowned process licensors, such as, Chevron Lummus Global for the Hydrocracking unit, UOP/Foster Wheeler for the Solvent De-Asphalting unit and Black & Veatch for the Sulfur Recovery unit. Oman Oil Refineries and Petroleum Industries was formed to optimise the four refining and petrochemical plants - Mina Al Fahal Refinery, Sohar Refinery, Aromatics and Polypropylene plants in Sohar.
The refinery at Mina Al Fahal has been operating since 1982 and has refining capacity of 106,000bpd. Sohar Refinery began operations in 2006 and has a capacity of 116,000bpd.
It is designed to maximise propylene yield, as well as, produce straight run naphtha, LPG, gas oil, gasoline, fuel oil and jet fuel. It is also designed to supply feedstock to Oman Polypropylene and Aromatics Oman plants.
The aromatics plant, located in Sohar, was commissioned in February 2010 and is designed to produce 818,000 tonnes per annum of paraxylene and 198,000 tonnes per annum of benzene, using naphtha supplied by Sohar Refinery, as well as, imported.
Paraxylene is an essential raw material for the production of polyester fibers and plastic bottles. The other petrochemical produced in the aromatics plant is benzene, which is used as an intermediate material for producing chemicals, which are in turn used to produce a wide range of plastics, detergents and other chemicals.
Oman Polypropylene plant, also located in Sohar, began operations in 2007 and is a state-of-the-art factory built to be the seed for the development of a downstream polypropylene industry in Oman, using feedstock from Sohar Refinery. Polypropylene is the most widely used thermoplastic in several industries due to its unique characteristics and plasticity.
MUSCAT: The proposed expansion of Sohar Refinery is expected to boost production of adjoining downstream petrochemical industries.
"The additional feedstock requirements of both Aromatics Oman and Oman Polypropylene will be met through this expansion. This will boost our petrochemical production, especially in Sohar industrial area," Mohammed bin Hamed Al Rumhy, Minister of Oil and Gas, told reporters, after signing an agreement for front-end engineering design (FEED) and project management consultancy (PMC) with CB&I Lummus B V here yesterday.
The pact was signed on behalf of Oman Oil Refineries and Petroleum Industries by Al Rumhi and Scott Wiseman, vice-president of CB&I Lummus. These contracts are linked to a massive expansion of Sohar Refinery to take the total refining capacity to 187,000 barrels per day (bpd) from 116,000bpd now. The expansion project, with an estimated capital expenditure of $1.5 billion, will be completed in 2015.
Elaborating on the new product streams, Al Rumhy said, "We are planning to start production of asphalt to meet the growing demand for road construction. There could be a possibility of using the same in insulation and water proofing purposes as well."
"We are currently negotiating with one or two investors who want to use paraxylene from the Aromatics project. So that we will have value addition and more employment opportunities," he added.
He said the Ministry of Industry and Commerce is also trying to attract investors for building downstream industries.
"This occasion marked the beginning of further investments in the highly valuable hydrocarbon refining and manufacturing business in the Sultanate," the minister said, adding; "This large scale industrial investment by the government will provide added value to the refinery and petrochemical assets in the Sohar Port area."
The Sohar Refinery expansion project, through its projected contribution and forecasted benefits, will align well within the path paid out for the Oman 2020 vision toward diversification of the Omani economy. "This is a major investment, which will benefit the Sultanate and the Batinah region for many years to come."
"The objective of the expansion project is to increase the production of petroleum products, such as, LPG, naphtha, Jet A-1 fuel, gasoline, diesel and propylene. The additional petroleum products will meet the growth of local demand, and further enhancing Oman's exports of petroleum and petrochemical products," noted Musab al Mahruqi, Group Chief Executive Officer of Oman Oil Refineries and Petrochemical Industries.
"Additionally, this project will produce bitumen to meet the demand of the local market and eliminate the need for bitumen imports," added Al Mahruqi.
Al Mahrouqi said it is expected that the engineering, procurement and construction (EPC) contract will be floated in the first quarter of 2012, culminating in the commissioning and on-stream operations of the refinery units in 2015.
Several specialised contracts were awarded earlier this year to internationally-renowned process licensors, such as, Chevron Lummus Global for the Hydrocracking unit, UOP/Foster Wheeler for the Solvent De-Asphalting unit and Black & Veatch for the Sulfur Recovery unit. Oman Oil Refineries and Petroleum Industries was formed to optimise the four refining and petrochemical plants - Mina Al Fahal Refinery, Sohar Refinery, Aromatics and Polypropylene plants in Sohar.
The refinery at Mina Al Fahal has been operating since 1982 and has refining capacity of 106,000bpd. Sohar Refinery began operations in 2006 and has a capacity of 116,000bpd.
It is designed to maximise propylene yield, as well as, produce straight run naphtha, LPG, gas oil, gasoline, fuel oil and jet fuel. It is also designed to supply feedstock to Oman Polypropylene and Aromatics Oman plants.
The aromatics plant, located in Sohar, was commissioned in February 2010 and is designed to produce 818,000 tonnes per annum of paraxylene and 198,000 tonnes per annum of benzene, using naphtha supplied by Sohar Refinery, as well as, imported.
Paraxylene is an essential raw material for the production of polyester fibers and plastic bottles. The other petrochemical produced in the aromatics plant is benzene, which is used as an intermediate material for producing chemicals, which are in turn used to produce a wide range of plastics, detergents and other chemicals.
Oman Polypropylene plant, also located in Sohar, began operations in 2007 and is a state-of-the-art factory built to be the seed for the development of a downstream polypropylene industry in Oman, using feedstock from Sohar Refinery. Polypropylene is the most widely used thermoplastic in several industries due to its unique characteristics and plasticity.
© Times of Oman 2011
