Oman Gas plans network expansion drive
Muscat, July 13, 2014
Oman Gas Company (OGC), the wholly government-owned gas transportation utility, has studied a range of important initiatives to expand its countrywide network and contribute to the maximisation of the value of the Sultanate’s gas resources, said a report.
The initiatives include a major oil pipeline to Ras Markaz were the company intends to build a 200-million barrel capacity crude oil storage park on Wusta coast, said the Oman Daily Observer report.
A proposed tie-in of DNO Oman’s export gas to the North Gas Grid, additional gas supply to Salalah Methanol Company and a gas supply to the Carmeuse/Majan plant in Salalah Free Zone, is also being similarly studied.
Other ventures planned by OGC, that have progressed through to the front end engineering design (FEED) stage, include proposals for a Muscat City Piped Gas Scheme, additional gas supply to Salalah-based Raysut Cement, a leading cement producer in the Sultanate, gas supply to the Technical Research Centre, design engineering work linked to a planned pipeline supplying gas to Associated Industries.
Another important project that OGC is looking to support is a natural gas liquids (NGL) extraction plant planned at Fahud within proximity of OGC’s northern gas transportation system.
The project aims at extracting the ethane component from natural gas and send it by pipeline for further processing at the $3.6 billion Liwa Plastic project planned by Orpic at Sohar Port.
"The Salalah LPG project was progressed to the pre-FEED stage which is crucial for OGC to progress from providing gas infrastructure, which of course we will continue to upgrade, into gas value chain projects as well," Yousuf bin Mohammed Al Ojaili, CEO, Oman Gas, was quoted as saying in the newly released 2013 Annual Report.
"We have very successfully progressed the Salalah LPG concept study work and the project looks technically and economically solid. While taking this project forward, OGC will also evaluate other similar opportunities in different locations in Oman, where LPG or NGL extraction is based," he added.