Muscat - Oman Chlorine is planning to set up a US$70mn joint venture (JV) chemical plant in Qatar to expand its business with oil and gas service companies operating in the region.
The company announced that its Qatar-based sister company Gulf Chlorine WLL signed a contract last week with a leading specialised international company for engineering, supply and construction of the new plant at the Mesaieed Industrial City in Qatar. The plant will produce caustic soda, acid and other related products, Oman Chlorine said in a filing to the Muscat Securities Market (MSM).
Gulf Chlorine WLL is 51 per cent owned by Oman Chlorine.
Speaking to Muscat Daily, a senior official of Oman Chlorine said the JV plant in Qatar is expected to involve an investment of US$70mn and its capacity will be 70 tonnes per day.
In November last year, Oman Chlorine's Abu Dhabi-based sister company Union Chlorine LLC, which is 48.8 per cent owned by Oman Chlorine, also signed a contract for the construction of a similar US$70mn plant in the ICAD Industrial Zone in Abu Dhabi.
The capacity of the Abu Dhabi plant will also be 70 tonnes per day and it will be operational by the fourth quarter of 2015. The plant will produce caustic soda, acid and other related products.
The official said, "We are capitalising on our relationships with the oil and gas industry in the region. The new plants in Abu Dhabi and Qatar are expected to support the strategic operations of Oman Chlorine in neighbouring markets and expand its existing business with oil and gas service companies operating in the region. "
The new chemical plant in Qatar is expected to commence trial production in the fourth quarter of 2015.
In the sultanate, Oman Chlorine owns and operates a chloralkali plant in Sohar. The company manufactures hydrochloric acid, caustic lye and sodium hypochlorite. The company also manufactures value-added products like caustic flakes and calcium chloride.
© Muscat Daily 2014
