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.
But 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.
Tecna won Oman Gas Salalah LPG conceptual study
From its list of the key projects OGC will invest first in the:
– 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
The remaining methane will be sold to the Salalah Free Zone.
The Fahud NGL Plant project belongs to Oman Oil Refineries and Petroleum Industries Company (ORPIC) but will be executed and operated by OGC.
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.