24 November 2015
Oman Gas Company (OGC), the Sultanate's gas transportation flagship, has awarded its Salalah Gas Loop Line project -- a longstanding initiative designed to boost natural gas supply to rapidly expanding Dhofar Governorate -- to Egypt's Petrojet.

The Cairo-based construction contractor, which has full-fledged operations in the Sultanate, will lay a 32-inch diameter pipeline that starts at OGC's Gas Compressor Station in Nimr. Extending 85 kilometres, the new pipeline will tie in with an existing pipeline at Marmul that runs all the way south to Salalah in Dhofar Governorate.

Dubbed the Salalah Gas Loop Line, the 32-inch diameter pipeline will ramp up supplies to Dhofar where a combination of infrastructure and industrial investment is fuelling demand growth in the governorate.

Among the major customers that will benefit from the additional gas supplies are the developers of a new Independent Power Project (IPP) currently under development in Salalah. A consortium comprising ACWA Power, Mitsui & Company Ltd and Dhofar International Development and Investment Holding Company (DIDIC) is setting up the green-field 445 MW power plant at Raysut.

Salalah Methanol is also preparing to set up a 1,000-tonnes-per-day capacity ammonia plant alongside its methanol scheme in Salalah Free Zone. The project is among a number of industrial and manufacturing ventures slated for implementation around Salalah over the next few years. Ongoing investment in tourism resorts, hotels, shopping malls and residential schemes is also expected to drive up energy demand across the governorate.

Petrojet's brief, according to officials, is to undertake the engineering, procurement and construction (EPC) of the loop line project based on a front-end engineering design (FEED) provided by OGC and enhanced by Tebodin Oman.

"We are currently focused on preparing the detailing engineering design, upon the completion of which we hope to get started with the actual construction of the pipeline tentatively by February 2016," an official said. "Pipes for the project have already been procured by OGC under a separate tender, but there are associated utilities like valve stations, isolation joints, and other fittings that are part of Petrojet's brief," he stated. A 12-month schedule has been specified for the completion of the project after the detailed design phase -- a challenging timeframe Petrojet says it is gearing up to meet.

A multidisciplinary integrated construction contractor, Petrojet offers a diverse spectrum of services related to the oil, gas, petrochemical and industrial sectors in Egypt and across the Middle East.

© Oman Daily Observer 2015