07 June 2013 10:05 [Source: ICB]
Project in Oman wil use NGL feedstock and is expected to be completed by 2018
Oman Refineries and Petroleum Industries Co (Orpic) is planning to begin work on the front-end engineering design (FEED), and to select a technology provider for its $3.6bn (€2.8bn) integrated Sohar plastics project before the end of the year, said CEO Musab al Mahruqi.
The project, together with the soon-to-commence Sohar refinery improvement project, will produce most of the key petrochemical ingredients that constitute the essential building blocks of a potential plastics industry in Oman.
Orpic already operates an aromatics plant at the site
Around 60% of the feedstock for the Sohar plastics project will come from the existing Sohar refinery, while 40% will be natural gas liquids (NGL) extracted from gas fields of Fahud, he said.
The project, which will be integrated into the existing Sohar refinery, PP and aromatics units, will produce PE, PP and additional gasoline and benzene.
The Sohar plastics project will provide good returns to the state-owned firm and its shareholders, as well as produce the petrochemical building blocks that will open up further opportunities for the plastics industry in Oman, he said.
The new units will be incorporated into the existing petrochemical infrastructure at Sohar Copyright: Ryan Lackey
Building the plastics project close to the refinery will result in one of the most efficient and integrated refinery and petrochemical complex in the world, he added.
The new units will be incorporated into the existing petrochemical infrastructure at Sohar
Copyright: Ryan Lackey
Total investment for the project - which is behind schedule by two years - and the Sohar refinery expansion is estimated at $5bn.
Once commissioned, the plastics project will enhance both fuel and plastics production. By 2018, Orpic's plastics production will increase to 1.4m tonnes/year from 200,000 tonnes/year currently, while fuels production will touch 11.3m tonnes/year from the current output of 7.3m tonnes/year.
Upon completing the upgrade of the Sohar refinery, Orpic's output of fuels will increase by 4.2m tonnes/year to reach an overall aggregate production of 13m tonnes/year by 2016.
In terms of revenue, the Sohar refinery upgrade is expected to grow Orpic's revenue to over $14bn in 2016 from around $10bn in 2012. Revenues will grow further by $1.4bn after the plastics project is operational in 2018, Al Mahruqi said.
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