MUSCAT -- Industrial gases leader Air Liquide, which has set up a modern facility at the Port of Sohar, is planning a new expansion of plant capacity. The state-of-the-art unit, established by Air Liquide Sohar Industrial Gases LLC (ALSIG), went into production recently and has since begun supplying nitrogen to two major consumers within the industrial port.
"We have commenced supply of gaseous nitrogen to our main customers, Sohar Refinery Company and Oman Polypropylene Company, through our dedicated pipeline network. In addition, we are also producing liquid nitrogen to meet local market demand," Claude Maire, General Manager of ALSIG, said. Air Liquide, which has a majority 50.1 per cent stake in the Air Liquide Sohar venture, is a world leader in industrial and medical gases and related services. ALSIG has reputable partners: Oman Refinery Company (ORC), Mohsin Haider Darwish LLC (MHD) and Omar Zawawi Establishment (OMZEST).
Speaking to the Observer, Maire said the company is mulling an expansion of capacity designed to meet potential demand from new industrial customers at the Port of Sohar, as well as to offer a diversified portfolio of industrial gases. "We intend to shortly decide on phase 2, which we expect to far exceed phase 1 in terms of capacity and investment. New capacity has become necessary in order to establish the right economies of scale and create new synergies for consumers of industrial gases at the Port of Sohar," the General Manager commented.
ALSIG envisages investments in the range of $50 million in the second phase, the capacity of which is dependent on new supply contracts being signed, said Maire. The company is in discussion with a number of industries under development at the Port of Sohar, aimed at meeting their requirements of industrial gases like oxygen and nitrogen. Besides, ALSIG is also looking to diversify its product portfolio to include other gases, such as hydrogen gas (for petrochemical processes). Air Liquide also has experience in the production of carbon monoxide, and carbon dioxide, among others.
"As the world leader in industrial gases, Air Liquide's key strength lies in its unrivalled expertise and technological superiority," said Maire. "When signing up with us, our customers are assured of Air Liquide's world-class safety standards, reliability of supplies, and competitive value. We help create synergies that deliver good value to Sohar's industrial tenants, as well as enhance the competitive appeal of the industrial port to investment." ALSIG has invested in a pipeline network that ensures round-the-clock supplies of gases to industrial consumers at Sohar. In partnership with shareholder MHD, the company is supplying liquid products to the local market.
Significantly, Air Liquide is also looking to use its Sohar operations as a stepping-stone to potential investments elsewhere in Oman and the wider Middle East region. The French-based industrial gases conglomerate, which generated worldwide sales of 10.5 billion euros last year, is investing in new production facilities around the Gulf. "Air Liquide is convinced that Oman, and the Middle East in general, is an attractive place for further investments. Oman was among the first destinations in the Middle East for Air Liquide's investments.
We have since launched the first of two plants in Qatar, with another plant under development in Kuwait. Air Liquide is also carefully evaluating developments in Salalah and Sur to assess opportunities for investments there," Maire added. Present in more than 70 countries with around 36,000 employees, Air Liquide serves an estimated one million customers around the world. The Group's core business is to supply oxygen, nitrogen, hydrogen and many other gases and services to most industries, including steel, oil refining, chemicals, glass, electronics, healthcare, food processing, metallurgy, paper and aerospace.
By Conrad Prabhu
© Oman Daily Observer 2006
