Takamul at FEED stage for Salalah Ammonia Project
The Omani Takamul Investment Company (Takamul) is moving forward in the downstream sector with petrochemical projects at Salalah in the south of the Sultanate and at Sohar in the north.
Acting as the chemical branch of the Oman Oil Company (OOC or Oman Oil), Takamul benefits also from the guidance of other shareholders such as:
– Oman Oil 93.07%
– Abu Dhabi Water & Electricity Authority (ADWEA) 5.01%
– Al Maha Strategic Industries for Investments LLC 1.92%
With this support, Takamul is working on number of projects such as the Salalah Ammonia Project and the Sohar purified isophthalic acid (PIA) Project.
Through the Salalah Ammonia project, Oman Oil sees a double opportunity to develop the local economy in the south of Oman.
On the supply side, the Salalah Ammonia Project will contribute to monetize a part of the feedstock available from Salalah Methanol Company (Salalah Methanol).
On the demand side, the local production of ammonia will have a major effect on the Sultanate trading balance in reducing the import of nitrogen fertilizer.
In respect with Salalah Methanol capabilities of supply, the Takamul Ammonia project should be sized at world-scale with an investment of $700 capital expenditure.
Takamul is currently working on the front end engineering and design (FEED) of Salalah Ammonia Project to be located adjacent to the existing methanol facility.
Takamul is expecting to see the FEED work completed in 2015, in order to make the final investment decision (FID) in following.
ORPIC to join Takamul in Sohar PIA project
At the other side of the country the Oman Oil subsidiary is planning to invest in high added value petrochemical products with the Sohar PIA Project.
The purified isophthalic acid (PIA) is a critical building block required for the production of polyester.
Located in the north of the Sultanate, Sohar is attracting more and more industries consuming polyester for fibers applications, home furnishing and goods.
In addition Sohar is ideally located to export PIA to the other Gulf countries and in the north of India in competitive conditions.
Takamul competitive advantage relies on its access to cheap and abundant feedstock.
On the supply side, the PIA is produced out of an aromatic called metaxylene.
This metaxylene will be available from the Sohar refinery.
Operated by Oman Oil Refineries and Petroleum Industries Company (ORPIC), the Sohar Refinery is currently under revamping and upgrading project execution.
This expansion will give the opportunity to ORPIC to widen its portfolio of refined products with higher added value output such as the metaxylene.
As Takamul will be its unique client, ORPIC should join Oman Oil in the joint venture to operate this Sohar PIA Project.
With a capacity of 100,000 tonnes per year (t/y) of PIA, Takamul will become a key player of this market.
With the project currently at FEED stage, Takamul and its partners, Oman Oil and ORPIC, expect the Sohar PIA project to start first shipment in 2017.
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