11 April 2012
MUSCAT -- Salalah Methanol Company, which came into operation in May 2010, has achieved a production of two million metric tonnes of methanol. The production milestone was achieved on March 28, marking a significant achievement for the company, wholly owned by the government's hydrocarbon investment arm Oman Oil Company.

In comments on this occasion, Awadh bin Hassan al Shanfari (pictured), CEO of Salalah Methanol Company, said: "The Company has successfully completed more than one million man hours with no lost time injuries in the field of Health, Safety and Environment. This reflects a non-negotiable commitment by the company employees and its involved stakeholders towards Health, Safety and Environment."
Al Shanfari added: "In addition to the above achievement, Salalah Methanol Company has achieved more than 50 per cent Omanisation in a relatively short period of time since it came into operation in May 2010." He pledged to raise Omanisation at all levels -- technical and non technical -- through training and development programmes.

"The company has not overlooked its corporate social responsibility. It has supported many corporate social responsibility initiatives that focused on the development of human resources, the company and its stakeholder's beliefs in the importance of corporate social responsibility as one of its key business that balance economy, social and environment," Al Shanfari added.

"We are currently studying new corporate social responsibility initiatives and the company will allocate one per cent of its net profits to fund many more corporate social responsibility initiatives geared towards the development of the local community."

Al Shanfari explained that the strategy of the company would be based on funding sustainable development projects, such as training and development programmes, and initiatives related to environmental projects.

Located at Salalah Free Zone in Dhofar Governorate, Salalah Methanol Company was conceived and implemented in line with the government's goal to diversify the economy and create employment opportunities for Omanis.

Around $900 million was invested in the plant, which utilises natural gas as feedstock to produce methanol. The feedstock is supplied by the Ministry of Oil and Gas through Oman Gas Company. The offtake of SMC's product methanol is managed by Oman Trading International Ltd (OTI), which handles the marketing of the product globally.

The plant was designed in full compliance with international safety and environmental standards. In addition, qualified and experienced personnel were appointed from the outset to meet all HSE (Health, Safety and Environmental) norms.

The company has always been committed to Health Safety and Environment right from the project phase to the current operations and this reflects in one of its remarkable achievements by completing more then one million man hours without lost time injury to date.

Through OTI, methanol is being continuously delivered worldwide covering Northeast Asia, Northwest Europe and US Gulf Coast. Working together SMC and OTI maintain a geographically and industrially diversified product portfolio of customers. Two methanol vessels (Al Ameerat and Muttah), owned by Oman Shipping Company, is dedicated to methanol transport.

Methanol is the simplest alcohol compound, comprised of one carbon atom, one oxygen atom and four hydrogen atoms (CH3OH). It is also referred to as wood alcohol and methyl alcohol. It is colourless, flammable, toxic liquid with a distinctive odour that is very similar but slightly sweeter than ethanol (drinking alcohol).

Methanol is non-toxic, unless it's intentionally inhaled or drunk. It has been used in some countries as a fuel (or mixed with gasoline) for vehicles and as an economic alternative for gasoline. The widespread usage of this product creates opportunities for other downstream industries.

© Oman Daily Observer 2012