MUSCAT -- Oman-based Saltic LLC FZE has formally launched work on its world-scale caustic soda and ethylene dichloride plant at Salalah Free Zone, further bolstering the Sultanate's credentials as an emerging petrochemicals giant. Site preparation works kicked off recently on a 35-hectare plot within the massive special economic zone adjoining the Port of Salalah. South Korea's Hanwha Engineering & Construction Corporation is executing the project under an engineering, procurement & construction (EPC) contract awarded by the promoters last November.
Salalah-based contractor, Al Ez Trading, Transport Cont Co, is undertaking the site works as part of the promoters' strategy to engage local firms in the implementation of the venture. Saltic is investing an estimated $500 -- 600 million in the development of a state-of-the-art petrochemical complex designed to produce 1,000 tonnes per day of caustic soda and 1,231 tonnes per day of ethylene dichloride (EDC). Both commodities are high-value intermediate products with extensive application in a variety of industrial processes. Caustic soda, one of two principal products of the Saltic plant, widely used in the manufacture of, among other things, textiles, detergents, pulp and paper, and drain cleaner products, as well as in potable water production.
Ethylene dichloride (EDC), on the other hand, is used in the manufacture of vinyl chloride monomer (VCM), which is the key raw material for producing polyvinyl chloride (PVC). Moreover, sodium hydroxide, a byproduct of the Saltic project, can be utilized in the refining of bauxite to produce alumina. With construction work having formally commenced, a key milestone in the implementation of this project -- more than three years in the making -- has now been achieved. All other statutory approvals, including the all-important environmental permit from the Ministry of Environment and Climate Affairs, have been obtained, say officials. Additionally, Dhofar Power Company has earmarked electricity loads of up to 150 MW for the project.
Importantly, a new Liquids Jetty being built by Salalah Port as part of its current infrastructure expansion will be suitably equipped to handle imports of ethylene for the Saltic venture. Facilities for the discharge of liquid ethylene at berth will be built by Hanwha as part of its EPC brief. Likewise, imports of salt as feedstock for the plant, as well as exports of caustic soda and EDC, will be handled via a new General Cargo Terminal, also under development at the logistics hub.
Underscoring the robust viability of the project, the promoters have already secured offtake commitments for the plant's caustic soda and EDC output, while contracts are also in place for the supply of feedstock. Industrial salt will be sourced from Indian and Australian suppliers, it is learnt.
Project completion is targeted during the fourth quarter of 2014, with commissioning slated for the first quarter of 2015.
When fully operational, the Saltic venture will add to a growing cluster of petrochemical schemes at Salalah Free Zone, which currently includes a $1 billion methanol plant owned by Salalah Methanol Company, and one of the world's largest PET projects run by OCTAL Petrochemicals.
Significantly, calcium chloride and PVC production are envisaged in subsequent phases of development of the Saltic project, which is also expected to attract downstream investments longer term. Around 300- 400 jobs will be created when the plant is operational, officials add.
© Oman Daily Observer 2013
