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Oman Gas Company in strategic shift to added value petrochemicals

OGC to invest $3.5 billion in LPG and NGL projects

The national Oman Gas Company SAOC (OGC) is preparing a strategic shift from its historical midstream activities toward liquid petroleum gas (LPG) and natural gas liquids (NGL) extraction and transformation for petrochemical use.

In 2000, OGC was established by Royal Decree to develop the infrastructures across the Sultanate of Oman to support the exploration and production of associated and non-associated gas up to its distribution to the power plants, industries and houses.

Over the last ten years, OGC installed and currently operates a large gas pipelines system in Oman.

Oman-Gas-Company_Gas_LPG_NGL_Projects_MapBut the Sultanate of Oman is willing to diversify its economical development from the production and export of crude oil and natural gas.

As most of the Gulf Country Council (GCC) members, Oman is now balancing its investments between the upstream sector with large tight gas projects and the downstream activities where its plans several refinery and petrochemical complex.

As a midstream company, OGC comes to be involved in these projects by the both ends, thus offering to this transportation company the opportunity to increase its added value:

 – Upstream in extracting LPG and NGL from the oil and gas produced in Oman

 – Downstream in delivering this LPG and NGL as feedstock to the emerging petrochemical industry.

This new transformation activities will also gives the opportunity to OGC to convert all the domestic market of house LPG consumption by more competitive piped natural gas.

Tecna won Oman Gas Salalah LPG conceptual study

To support the expansion of improvement of its distribution pipeline system and the construction of LPG and NGL facilities Oman Gas is planning to spend $3.5 billion capital expenditure.

From its list of the key projects OGC will invest first in the:

Oman-Gas-Company_Gas_Salalah-LPG_Fahud-NGL_Projects – 230 kilometers gas pipeline from Petroleum Development Oman (PDO) Saih Nihayda gas processing facility to the Oman Oil Company (OOC) refinery and petrochemical complex at Duqm on the center of the Oman Gulf coastline

 – LPG facility at the Salalah pipeline in the south of the Sultanate

 – NGL plant at Fahud in the north center of Oman

 – Muscat City Gas project

With the Salalah LPG project, OGC is targeting to produce 700 tonnes per day ( t/d) of LPG, typically butane, propane, and other condensate.

Oman-Gas-Company_Saih-Nihayda_Duqm_PipelineThe remaining methane will be sold to the Salalah Free Zone.

For the Salalah LPG facility OGC selected the Spanish engineering company Tecna to carry out the conceptual study.

The Fahud NGL Plant project belongs to Oman Oil Refineries and Petroleum Industries Company (ORPIC) but will be executed and operated by OGC.

This Fahud Gas Plant is also at feasibility study with the intention to supply condensate feedstock to ORPIC Liwa Plastic project at Sohar in the north of Oman.

If the feasibility study of the Salalah LPG and Fahud NGL projects are proven to reach commercial viability, Oman Gas Company could decided to move on the front end engineering and design (FEED) stage in 2014.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

3 Comments to “Oman Gas Company in strategic shift to added value petrochemicals”

  1. Your comment is awaiting moderation.

    We are one of the fast growing group in Tanzania with the Headquarters in Dar Es Salaam. We are looking for the bulk LPG for storage and sales through our existing Dar LPG terminal and through Tanga upcoming Terminal.

    We would appreciate if the Terms and Conditions can be laid for further discussions and actions.

    Warm Regards,
    Vinay Saxena
    Cell – +255 683183643
    Reply

  2. Dear sir.
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    • i am chemical engineer with 4 years work experience in LPG AREA. . i am job seeker.
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