01 August 2016

A number of regional and international firms are competing for a contract award linked to the establishment of a major nitrogen gas plant to serve the needs of the giant Liwa Plastics Industries Complex (LPIC) currently under development in Sohar, Oman.

The $6.4-billion petrochemicals scheme — the flagship investment of Oman Oil Refineries and Petroleum Industries Company (Orpic) — is coming up at a site within Sohar Port in North Al Batinah Governorate. 

 The successful bidder will secure a contract for the development of a 13,200 cu m per hour capacity nitrogen plant on a build, own and operate (BOO) basis. 

 To be located on the periphery of the petrochemicals complex, the captive gas plant will be required to cater to the nitrogen requirements of the mammoth scheme for a period of 20 years from the commercial commencement date. 

The proposed nitrogen plant is expected to be brought into operation by around the third quarter of 2018, just ahead of the planned commissioning of the LPIC complex, according to Orpic.

 Multiple consortiums are currently executing the four main components of the multi-billion-dollar scheme under engineering, procurement, construction (EPC) contracts concluded by Orpic last December.

 The joint venture of CB&I and CTCI Corporation is undertaking the main steam cracker package, while Technimont is executing the plastics/polymer units. At the upstream end of the project, the JV of GS Engineering and Construction and Mitsui & Co is building the NGL (natural gas liquids) extraction plant at Fahud. Finally, the pipeline ferrying the NGL from Fahud to Sohar is being constructed by Punj Lloyd.

 When operational by 2019, LPIC will help maximise value addition from Oman’s hydrocarbon resources, notably by producing commercially valuable intermediate products such as polypropylene and polyethylene. 

 Integrated with Orpic’s existing Sohar refinery and aromatics plant, LPIC will generate high value products that will enhance revenues for the group with attendant benefits for the wider economy as well.

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