Salalah LPG Plant to Start Production in 2019

Source: Oman Observer 5/20/2015, Location: Middle East

Salalah LPG Extraction Project, which is to extract all of propane, butane and condensate associated with the natural gas pipeline from Salalah area, is likely to start actual production run sometime in 2019. One of the most ambitious projects in Dhofar, the Salalah LPG Project is the result of Oman Gas Company’s (OGC) efforts to find ways for optimising the added value of gas chain.

The analysis for the project found a location in Salalah Free Zone most suitable, as the very idea was conceptualised way back in 2012. The OGC introduced this project to a gathering of businessmen and local stakeholders through a workshop on Wednesday. Representatives from two major contracting companies — CB&I and Petrofac — were also present during the event.

Abdulaziz al Mujaibi, Acting CEO of Oman Gas Company, termed this as one of the most prestigious projects in Salalah, which according to him, would be full of incountry value (ICV) with huge potential for new jobs and support to small and medium enterprises (SMEs). Commenting on time line of the project, Al Mujaibi said: “The project was conceptualised in 2012-13, now (2014-15) we are in feed stage doing design evaluation between two major companies Petrofac and CB&I, 2016-18 would be stage for detailed design, procurement and construction and 2019 onwards we would be in a position to commission the project as Salalah LPG Company.

Mohammed al Barami, Interface Manager of Oman Gas Company, laid stress on the security safety and environmental standards and said the site would be far away from the local population and this would strengthen the availability of natural gas and its derivatives in Salalah area.

“And of course there would be spectrum to provide investment opportunity for industries dependent on LPG,” he said. Henry Jimenez, LPG Project Director at Oman Gas Company, gave valuable information about the project and said: “The operation period of the project is 25 years with a guaranteed gas supply. The capacity would be 327000 per year, 10 per cent of which is to be used locally, while 90 per cent would be exported.” Jimenez said the project would hugely benefit the region, as it would provide security of LPG for local consumption and offer high value jobs to qualified people of the region, as the plant would be based in Salalah itself.

The Oman Gas Company officials assured on safety front and said it would rather organise awareness programmes in the province, apply the highest safety systems during and after the construction phase and ensure that there is no gaseous emissions / odors harmful to the environment.

The officials also hinted at emergence of downstream petrochemical projects, as studies are going on in association with methanol producer, Salalah Methanol.“All such possibilities would be explored to maximise opportunities and reduce waste of energy in all forms.

They reiterated on the project’s local value and said besides making them self sufficient in cooking gas (propane and butane) the company will support the local community with essential services. The project, according to them would be community driven without having any compromise on safety and environment.

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