C3 supply constraint caps Oman Polypropylene’s ops rate at 70%

10 January 2011 12:48  [Source: ICIS news]

DUBAI (ICIS)--Oman Polypropylene’s 340,000 tonne/year polypropylene (PP) plant at Sohar, Oman, can only run at a maximum production rate of 70% because of a shortage of on-site propylene feedstock, a source close to the company said on Monday.

It receives propylene from the residual fluid catalytic cracker (RFCC) operated by Oman Refineries and Petrochemicals Co (ORPC), but the supply was insufficient for running the plant at 100% capacity, the source said.

ORPC has to expand its refining capacity at Sohar and install a second RFCC at the same site in order to supply enough feedstock for Oman Polypropylene to achieve full operating rates, the source said.

ORPC is jointly owned by Oman’s Ministry of Finance (75%) and state-owned conglomerate Oman Oil Co (25%). It is expected to announce within the next two months its plans to expand its 116,000 bbl/day refinery at Sohar, the source said.

The expansion plan was likely to double the refining capacity at Sohar, he added.

Oman Polypropylene is a joint venture between South Korea’s LG International (20%), Oman’s Ministry of Finance (40%) and Oman Oil Co (40%).

The companies were not immediately available for comment.

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Author: Bee Lin Chow



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