LG International mulls EDC project in Oman

SINGAPORE (CNI)--LG International (LGI) is considering building an ethylene dichloride (EDC) plant in Sohar, Oman, according to sources close to the project.

Two sources said LGI had appointed Nexant ChemSystems to conduct a feasibility study on the project, which is to be integrated with a chloralkali unit. The study, which has been completed, shows that the project is feasible, according to the sources. An LGI spokesman declined to comment on the project.

LGI is expected to partner state-owned Oman Oil Co (OOC) for the project. LGI and OOC might form a 40:60 joint venture or invite more partners to participate in the project, one source said.

The project would have a capacity of 300 000 tonne/year, which is of the same scale as LG Chem’s previously announced EDC project in Australia, the source said. LG Chem abandoned the Australian project and is now considering alternative sites in China.

Ethylene feedstock could be sourced from National Petrochemical Co (NPC) of Iran until OOC’s cracker project starts up, according to the source. The EDC project is slated to start up in 2007, but the cracker project is still under study and is unlikely to start up till around the end of this decade.

Salt for the chloralkali unit could also come from NPC, which is considering building a salt refinery near Sohar, the source said. He added that low electricity cost in Oman was another factor in favour of the project.

NPC declined to comment on its involvement in the EDC project and on whether it would invest in it.