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ORPIC kick off plastic industry at Sohar in Oman

ORPIC Liwa Platics Project to reach FEED stage

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Oman Refinery and Petroleum Industries Company (ORPIC) confirmed to have called for tender the front end engineering and design (FEED) work for its $3.6 billion petrochemical complex to produce plastics in Al-Liwa, close to Sohar in the north of Oman.

To be integrated to the Sohar Refinery after its on-going expansion, the Liwa Plastics Project will stand as the real kick off for the production of these petrochemical added value products in Oman.

Oman_ORPIC_Sohar_Liwa_Plastics_Project_mapWith this Liwa Plastics Project, the production of plastics will jump from the current 200,000 tonnes per year (t/y) to 1.4 million t/y by 2018.

This project is part of the Sultanate program to reduce its reliance on the export of crude oil and natural gas in developing its downstream industry to retain more added value in the country considering that each $ billion invested downstream is creating four times more jobs than the same $ billion spent upstream.

For now the existing Sohar refinery is treating 116,000 barrels per day (b/d) of crude oil with propylene output 40% too short to feed the current polypropylene unit next door.

With the Sohar Refinery Improvement Project ORPIC will increase the refinery capacity to 176,000 b/d in order to produce more transportation fuels and to increase the feedstock available for the Liwa Plastics project.

Liwa Plastics Project to adopt mixed steam cracker

While increasing the naphtha deliveries from the Sohar Refinery with the on-going Sohar Refinery Improvement Project, ORPIC decided to adopt the mixed steam cracker technology in order to also accept ethane, natural gas liquids (NGL), mixed liquid petroleum gas (LPG) and other condensate as feedstock.

In this perspective the Liwa Plastics Project includes three parts:

 – Upstream: Gas extraction plant located at Fahud

 – Midstream: 300 kilometers gas export pipeline from Fahud to Sohar

 – Downstream: Sohar Integrated Petrochemical Complex 

Located at Al Liwa where lies the Port of Sohar, the Sohar Petrochemical Complex will include:

Oman_ORPIC_Sohar_Liwa_Plastics_Projects – Mixed Steam Cracker with 800,000 t/y capacity

 – High Density Polyethylene (HDPE) unit with 300,000 t/y capacity

 – Linear Low Density Polyethylene (LLDPE) unit with 500,000 t/y capacity

 – Polypropylene (PP) unit with 215,000 t/y capacity

 – Methyl Tertiary Butyl Ether (MTBE) unit with 40,000 t/y capacity

 – Butane-1 unit with 45,000 t/y capacity

Estimated to require $3.6 billion capital expenditure, the Liwa Plastics Project is now reaching the FEED stage since ORPIC initiated the tendering process.

ORPIC qualified only four bidders for the steam cracker

Focusing on the engineering companies providing their own license for the technology sensitive mixed steam cracker, ORPIC is only considering:

Oman_ORPIC_Sohar_Liwa_Plastics_Project – CB&I Lummus from USA

 – KBR from USA

 – Linde from Germany

 – Technip from France

On this base ORPIC is planning the FEED work to take 16 months until awarding the engineering, procurement and construction (EPC) contracts for the Liwa Plastics Project expected to run into commercial operations by 2018.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer2B1st_Project_Smart_Explorer_Sales_Pursuit_Tool

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