Liwa Plastics Project is 60 per cent complete

Muscat: Oman’s refining and petrochemicals flagship, Orpic states that the country’s  most anticipated transformation project Liwa Plastics Industries Complex (LPIC) is currently underway and has already achieved more than 60 per cent of project completion across its four EPCs.

The project is set to improve Orpic’s product mix and business model, double its profit and support the development of a downstream plastics industry in Oman. Taking advantage of the growing global market for plastics, LPIC will create new business opportunities and employment in Oman, and firmly reinforce Orpic as a significant player in the international petrochemicals marketplace as it will bring new business development opportunities for the Sultanate in the fast-growing plastics industry.

The project construction is ongoing and is expected to be completed by 2020. LPIC achieved 31 Million LTI-free man-hours out of 47 Mn man-hours spent since the project was kicked off. The overall cumulative progress achieved was 67.8% against the revised plan of 69.8% till June 2018.

With a total investment of USD 6.7 billion, LPIC is expected to boost Orpic’s contribution to develop the In Country Value (ICV) for the national economy.

With the global market for plastics growing, the Liwa Plastics Industries Complex will firmly reinforce Orpic as a recognized player in the international petrochemicals marketplace – enabling Oman, for the first time, to produce polyethylene, the form of plastic that rates highest in terms of global demand and increased the current production of polypropylene.

Liwa Plastics Industries Complex consists of gas extraction plant in Fahud, 300-KM pipeline from Fahud to Suhar, steam cracker plant and polymers plant in Suhar Industrial area. The steam cracker plant will process light ends produced in Orpic’s plants in Suhar as well as rich gas received from Fahud plant. Its concept lies in rerouting high value elements of existing production streams, in combination with more purchased feedstock to deliver high value polymer products for the local and international marketplaces.

The primary goal of Liwa Plastics Industries Complex is to further increase the value-added that can be derived from Omani crude oil and natural gas. The project has six core components to it:

  • A natural gas extraction plant in Fahud
  • 300km pipeline between Fahud and Suhar Industrial Port Area for gas transportation
  • An 800+kTA Steam Cracker Unit
  • An HDPE Plant
  • A LLDPE Plant
  • A Polypropylene Plant

Following commissioning, plastics production is forecast to have increased by more than 1 million tonnes, giving Orpic a total of 1.4 million tonnes of polyethylene and polypropylene production.

With the highly integrated complex in Suhar including the refineries, aromatics plant, steam cracker and the downstream polypropylene and polyethylene plants, the operation will be one of the best integrated refinery and petrochemical facility combinations in the world, and will be able to achieve the maximum value-added for Oman’s hydrocarbon molecule.

The project is on schedule for completion in 2020.

  • The anticipated outline timeline is as follows:
    • February 2014 FEED and Technology awarded
    • December 2014 EPC Tendering
    • October 2015 Award of EPC
    • Q4 2019 Start of Commissioning
    • Q2 2020 Commercial Operational
  • Anticipated production volumes
    • 838 KTA of Polyethylene (LLDPE/HDPE)
    • 215 KTA of Polypropylene
    • 186 KTA Mogas
    • 46 KTA Benzene