11 December 2013
MUSCAT -- Two significant projects planned by the state-owned Oman Gas Company (OGC) with the aim of extracting commercially valuable components from natural gas flowing through its huge gas transportation network, are due to be brought into operation by 2018.
According to a senior company official, the Liquefied Petroleum Gas (LPG) Extraction Plant envisaged at Salalah is slated for commissioning by the fourth quarter of 2018, while a Natural Gas Liquids (NGLs) Extraction plant planned at Fahud in north Oman is targeted for launch before the end of 2017. Both ventures are designed to optimise the added value potential of Oman's hydrocarbon wealth -- natural gas in particular -- before it is supplied to various power stations and industrial plants as a fuel.
"We have completed the concept studies for both projects," said Talal al Balushi, Senior Project Engineer at OGC. "The economics of both ventures are very promising, with studies indicating very high returns on revenue. OGC is now exploring various ways and strategies to meet the challenging timeframes identified for the commissioning of the plants," the official stated in a presentation to delegates at the Gas Arabia Summit under way at the Grand Hyatt Muscat.
A likely location for the establishment of the LPG Extraction Plant is either Salalah Port or the adjoining free zone development within proximity of OGC's southern pipeline grid, which starts from Saih Rawl in central Oman and travels south to Salalah.
Envisaged is a state-of-the-art facility that will extract the different components of LPG -- chiefly propane (C3), butane (C4) and light condensate (C5) -- from natural gas flowing through OGC's southern grid. The gas transportation utility is looking at setting up a plant with a capacity to process 8 million standard cubic metres per day (mmscmd) of gas [equivalent to 282 million standard cubic feet per day (mmscfd)].
At full capacity, the plant is expected to produce 153,000 tonnes per annum (tpa) of propane, 115,000 tpa of butane and 59,000 tpa of condensate. While around 10 per cent of the total LPG volumes extracted from the pipeline grid is earmarked for domestic consumption within Salalah, the balance will be supplied to local or international markets, Al Balushi said.
According to the official, LPG extraction will significantly enhance the commercial value of natural gas.
"Natural gas is typically sold at a value of around $5 per mmBTU (although this may be higher or lower depending upon the producing country in question). But LPG extracted from the gas commands an additional value of around $15 per mmBTU, and is thus a key factor in the economics of such projects."
The NGL plant, on the other hand, is proposed to be established in Fahud within proximity of OGC's northern gas transportation system, Al Balushi said. Here, the ethane (C2) component of natural gas will be extracted and sent by pipeline for further processing at the $3.6 billion Liwa Plastics Project planned by ORPIC, the Sultanate's flagship refining and petrochemicals firm, at Sohar Port.
Based on a concept study undertaken by CB&I Netherlands on behalf of OGC, the NGL plant will be designed to process 671 mmscfd of natural gas, with ethane recovery rated at 98 per cent. It is understood that ORPIC will finance and build the facility as part of its massive Liwa Plastics venture. The NGL plant's location at Fahud, as opposed to Sohar, Muscat or other sites in north Oman, is seen as advantageous because it would allow for capacity expansions in the future through the addition of new trains, the official said.
Around 200 direct jobs are expected to be created for Omani nationals as a result of these extraction plants, Al Balushi added.
MUSCAT -- Two significant projects planned by the state-owned Oman Gas Company (OGC) with the aim of extracting commercially valuable components from natural gas flowing through its huge gas transportation network, are due to be brought into operation by 2018.
According to a senior company official, the Liquefied Petroleum Gas (LPG) Extraction Plant envisaged at Salalah is slated for commissioning by the fourth quarter of 2018, while a Natural Gas Liquids (NGLs) Extraction plant planned at Fahud in north Oman is targeted for launch before the end of 2017. Both ventures are designed to optimise the added value potential of Oman's hydrocarbon wealth -- natural gas in particular -- before it is supplied to various power stations and industrial plants as a fuel.
"We have completed the concept studies for both projects," said Talal al Balushi, Senior Project Engineer at OGC. "The economics of both ventures are very promising, with studies indicating very high returns on revenue. OGC is now exploring various ways and strategies to meet the challenging timeframes identified for the commissioning of the plants," the official stated in a presentation to delegates at the Gas Arabia Summit under way at the Grand Hyatt Muscat.
A likely location for the establishment of the LPG Extraction Plant is either Salalah Port or the adjoining free zone development within proximity of OGC's southern pipeline grid, which starts from Saih Rawl in central Oman and travels south to Salalah.
Envisaged is a state-of-the-art facility that will extract the different components of LPG -- chiefly propane (C3), butane (C4) and light condensate (C5) -- from natural gas flowing through OGC's southern grid. The gas transportation utility is looking at setting up a plant with a capacity to process 8 million standard cubic metres per day (mmscmd) of gas [equivalent to 282 million standard cubic feet per day (mmscfd)].
At full capacity, the plant is expected to produce 153,000 tonnes per annum (tpa) of propane, 115,000 tpa of butane and 59,000 tpa of condensate. While around 10 per cent of the total LPG volumes extracted from the pipeline grid is earmarked for domestic consumption within Salalah, the balance will be supplied to local or international markets, Al Balushi said.
According to the official, LPG extraction will significantly enhance the commercial value of natural gas.
"Natural gas is typically sold at a value of around $5 per mmBTU (although this may be higher or lower depending upon the producing country in question). But LPG extracted from the gas commands an additional value of around $15 per mmBTU, and is thus a key factor in the economics of such projects."
The NGL plant, on the other hand, is proposed to be established in Fahud within proximity of OGC's northern gas transportation system, Al Balushi said. Here, the ethane (C2) component of natural gas will be extracted and sent by pipeline for further processing at the $3.6 billion Liwa Plastics Project planned by ORPIC, the Sultanate's flagship refining and petrochemicals firm, at Sohar Port.
Based on a concept study undertaken by CB&I Netherlands on behalf of OGC, the NGL plant will be designed to process 671 mmscfd of natural gas, with ethane recovery rated at 98 per cent. It is understood that ORPIC will finance and build the facility as part of its massive Liwa Plastics venture. The NGL plant's location at Fahud, as opposed to Sohar, Muscat or other sites in north Oman, is seen as advantageous because it would allow for capacity expansions in the future through the addition of new trains, the official said.
Around 200 direct jobs are expected to be created for Omani nationals as a result of these extraction plants, Al Balushi added.
© Oman Daily Observer 2013
