Muscat - A meeting between Omani company Salmeen Industrial Projects LLC (SIP) and its joint venture partner UK-based BSW Group Holdings was held last week in Sohar. The parties agreed on the development of a petroleum coke calcining plant to be funded by BSW Group Holdings, according to a press release.

Tawfiq Ali Salmeen al Lawati, chairman of SIP, confirmed that the total cost of the project will be around US$430mn.

He said that the completed calcining plant will annually produce 450,000 metric tonnes of calcined petroleum coke - a core carbon component in the production of aluminium - and in doing so, will substantially reduce the volume of currently exported green coke and imported feedstock fuel for aluminium smelters and other users, which will have a positive impact on the environment.

The engineering, procurement and construction contract for the project has been awarded to Larsen & Toubro Heavy Engineering LLC, the Omani subsidiary of India-based L&T Hydrocarbon Engineering Ltd, a wholly-owned subsidiary of Larsen & Toubro Ltd. A project management contract has also been awarded to Abu Dhabi-based Probus Engineering and Construction LLC.

The project will be constructed utilising the local workforce and is expected to reach commercial operation by 2022.

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