24 February 2010
MUSCAT -- Salalah Methanol Company (SMC) is preparing to launch commercial operations in April this year, a move that is set to effectively double Oman's methanol output and reinforce the country's credentials as an emerging petrochemicals heavyweight.
Set up with a capital investment of around $900 million, the state-of-the-art plant located in the Salalah Free Zone (SFZ) is currently under commissioning, a top company official said.
Awadh al Shanfari, General Manager, told a forum of methanol industry executives that onsite support utilities have now been fully operationalised in preparation for the project's commercial launch slated for April 3.
Earlier, Maqbool bin Ali Sultan, Minister of Commerce and Industry, formally opened the 5th Methanol Markets and Technology Forum, at the Crowne Plaza Muscat yesterday. The two-day event, organised by the Singapore-based Centre for Management Technology (CMT), has attracted representatives from methanol producers, technology and equipment suppliers, and marketers from around the world.
CMT's decision to host the annual international event in Muscat is seen as a recognition of the Sultanate's growing reputation as a rising star among global petrochemicals producers. The country's first methanol project, the 3,000 metric tonnes per day plant of Oman Methanol Company in the Port of Sohar, commenced operations in October 2007.
The Sultanate's second methanol scheme at Salalah is similarly sized at 3,000 metric tonnes per day.
Salalah Methanol is owned by Oman Oil Company (90 per cent), a solely Omani government owned company, and Oman Energy Trading Company (10 per cent), a subsidiary of Oman Oil.
In a presentation on the execution of the project, Al Shanfari said the decision to establish the plant in an essentially greenfield area of Salalah, bereft of support utilities, stemmed from the government's desire to kickstart the growth of an industrial hub in this southern port city. Consequently, the company set about the development of a standalone plant backed by a full spectrum of support utilities. This included investments in seawater intake, captive power and water generation, boiler feed-water preparation, auxiliary steam generation, water treatment, instrument air/plant air and nitrogen generation, wastewater treatment and other utilities. These investments, while raising the project's capital costs, would pay off in the long run, Al Shanfari noted.
Moreover, its proximity to the deepwater port at Salalah, as well as the availability of natural gas as feedstock for the plant -- supplied via an existing gas pipeline from Saih Rawl -- added to Salalah's appeal as a suitable location for the project, he added.
Significantly, the plant's output can be ramped up by 15 per cent over and above its nameplate capacity of 3,000 tonnes per day, according to the General Manager.
All output will be commercialised internationally under an offtake arrangement concluded with Oman Trading International (OTI), a joint venture of Oman Oil Company and the international energy trader Vitol.
Potential export markets include northeast and southeast Asia, Europe and the United States, while priority will be given to local consumers, Al Shanfari said.
Also in place at the nearby Port of Salalah are loading facilities equipped with a trio of loading arms each capable of pumping 1,000 metric tonnes of methanol per hour. At this rate, a product carrier can be fully loaded in under 36 hours, thereby reducing the waiting time for ships calling at the berth, the official said.
In preparation for commercial start-up, natural gas has already begun flowing, while various other utilities, including the emergency cooling water system, potable water supply, seawater intake and return system, and nitrogen supply are now in continuous operation.
Al Shanfari also underlined the company's commitment to the environment, noting that the plant boasts a continuous ambient air monitoring station on site, as well as underground water monitoring, online flue gas analysis, storm water drainage facilities, and other control systems. The project's recent milestone of 16 million hours without a Lost Time Injury (LTI) also attests to the company's adherence to safety, he added.
MUSCAT -- Salalah Methanol Company (SMC) is preparing to launch commercial operations in April this year, a move that is set to effectively double Oman's methanol output and reinforce the country's credentials as an emerging petrochemicals heavyweight.
Set up with a capital investment of around $900 million, the state-of-the-art plant located in the Salalah Free Zone (SFZ) is currently under commissioning, a top company official said.
Awadh al Shanfari, General Manager, told a forum of methanol industry executives that onsite support utilities have now been fully operationalised in preparation for the project's commercial launch slated for April 3.
Earlier, Maqbool bin Ali Sultan, Minister of Commerce and Industry, formally opened the 5th Methanol Markets and Technology Forum, at the Crowne Plaza Muscat yesterday. The two-day event, organised by the Singapore-based Centre for Management Technology (CMT), has attracted representatives from methanol producers, technology and equipment suppliers, and marketers from around the world.
CMT's decision to host the annual international event in Muscat is seen as a recognition of the Sultanate's growing reputation as a rising star among global petrochemicals producers. The country's first methanol project, the 3,000 metric tonnes per day plant of Oman Methanol Company in the Port of Sohar, commenced operations in October 2007.
The Sultanate's second methanol scheme at Salalah is similarly sized at 3,000 metric tonnes per day.
Salalah Methanol is owned by Oman Oil Company (90 per cent), a solely Omani government owned company, and Oman Energy Trading Company (10 per cent), a subsidiary of Oman Oil.
In a presentation on the execution of the project, Al Shanfari said the decision to establish the plant in an essentially greenfield area of Salalah, bereft of support utilities, stemmed from the government's desire to kickstart the growth of an industrial hub in this southern port city. Consequently, the company set about the development of a standalone plant backed by a full spectrum of support utilities. This included investments in seawater intake, captive power and water generation, boiler feed-water preparation, auxiliary steam generation, water treatment, instrument air/plant air and nitrogen generation, wastewater treatment and other utilities. These investments, while raising the project's capital costs, would pay off in the long run, Al Shanfari noted.
Moreover, its proximity to the deepwater port at Salalah, as well as the availability of natural gas as feedstock for the plant -- supplied via an existing gas pipeline from Saih Rawl -- added to Salalah's appeal as a suitable location for the project, he added.
Significantly, the plant's output can be ramped up by 15 per cent over and above its nameplate capacity of 3,000 tonnes per day, according to the General Manager.
All output will be commercialised internationally under an offtake arrangement concluded with Oman Trading International (OTI), a joint venture of Oman Oil Company and the international energy trader Vitol.
Potential export markets include northeast and southeast Asia, Europe and the United States, while priority will be given to local consumers, Al Shanfari said.
Also in place at the nearby Port of Salalah are loading facilities equipped with a trio of loading arms each capable of pumping 1,000 metric tonnes of methanol per hour. At this rate, a product carrier can be fully loaded in under 36 hours, thereby reducing the waiting time for ships calling at the berth, the official said.
In preparation for commercial start-up, natural gas has already begun flowing, while various other utilities, including the emergency cooling water system, potable water supply, seawater intake and return system, and nitrogen supply are now in continuous operation.
Al Shanfari also underlined the company's commitment to the environment, noting that the plant boasts a continuous ambient air monitoring station on site, as well as underground water monitoring, online flue gas analysis, storm water drainage facilities, and other control systems. The project's recent milestone of 16 million hours without a Lost Time Injury (LTI) also attests to the company's adherence to safety, he added.
By Conrad Prabhu
© Oman Daily Observer 2010
