OQ Group has launched a tender for Front-End Engineering Design of Oman’s Saih Nihayda Natural Gas Liquids (NGL) extraction plant. Once functional, the plant will be able to produce 48 million cubic meters of gas per day. This is a big step forward for Oman’s gas industry plan. The project will boost Oman’s energy environment and generate income from natural gas resources. The project is also meant to help Oman diversify its economy by strengthening the regional gas supply chain.
The proposed plant will be the center of a fully integrated NGL value chain, linking upstream extraction in Saih Nihayda with downstream processing, fractionation, storage, and export infrastructure at the Special Economic Zone at Duqm (SEZAD). A 230-kilometer, 16-inch pipeline will connect the extraction facility to a fractionation complex in Duqm. This is where the key components of the gas will be split up. The planned outputs are ethane, propane, butane, and C5+ condensates. These will be used as feedstock in the petrochemical and manufacturing industries within Oman and across regional markets. The ethane from the project is believed to be very important for the planned Oman Petrochemicals Complex in Duqm, which would help the whole industrial platform.
The OQ FEED tender for the Saih Nihayda NGL plant supports the government’s plans to diversify the economy and that it will keep working to get the most out of Oman’s natural resources. OQ owns the whole project, which shows how committed the company is to making the petrochemicals sector stronger and making the Special Economic Zone at Duqm a place where high-quality industrial investments can be made. The scope includes building the NGL extraction plant in Saih Nihayda and a fractionation facility in Duqm that can separate about one million tons of gas components each year in its first phase. Other things include storage and maritime export facilities, refrigerated LPG tanks, and export lines that go straight to the liquid berth at the Port of Duqm.
OQ also inked a 20-year gas supply agreement with Integrated Gas Company to ensure steady supply of feedstock. This will help Oman achieve its industrial growth strategy. The development following the OQ FEED tender will attract investment and encourage strategic alliances. This will aid in creating long-term economic growth based on value-added gas processing.
