Major economic projects in Duqm to boost trade

Development projects in the Special Economic Zone at Duqm (SEZAD) are characterised by their size, value, quality and necessity for other economic sectors. Recently, SEZAD witnessed the launch of Duqm Refinery and Petrochemical Industries Project, which is the first joint venture between Oman Oil Company and Kuwait Petroleum International Company (KPI).
While work has begun on this vital project, global media reported that the Sultanate has announced a tender to establish an undersea gas pipeline, linking Suhar city and Iran, according to statement by Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas.
The trajectory of this line was modified to pass the territorial waters of the Sultanate and Iran only, and hence its high cost. The tender is now being finalised to receive bids and the construction process will begin later.
Upon completion of this project, Iran will export 28.3 million cubic metres of gas per day to the Sultanate, with a cost of $1.2-1.5 billion, while Iran’s gas will be used for local demand and exported to world markets as liquefied natural gas.
These two projects are not only vital to the countries in the region, but many others are expected to benefit from them.
Duqm Refinery and Petrochemical Industries is a major project in the region, with a daily refining capacity of nearly 230,000 barrels once completed, making it the largest joint venture between two GCC countries in the economic zone.
Moreover, it aims at integrating countries of the region whose products are in demand in all GCC countries and the rest of the world.
It is hoped that the project will contribute in transforming the region into one of the largest industrial and economic hubs. It also represents a qualitative addition to the refinery and petrochemicals sector in the region and opens up broad horizons which contribute to the national economy through transfer of expertise and technology, as well as providing job opportunities for Omani youth.
The Duqm Refinery project is the cornerstone for future projects in the lower value chain, which will appear later in the region.
The project will also increase the demand for logistics services, which will boost land, air and sea traffic to and from the Sultanate, and contribute in transforming the region into one of the largest industrial and economic hubs.
Launching this project in the Sultanate is in line with the national strategy for
economic diversification pursued by the Sultanate through promotion of optimal utilisation of national resources and making the most of them.
Such a project would also contribute in enhancing trade exclusively in Duqm area and enhance the investment environment by implementing more projects in Duqm and other Omani cities.
Oman has already started integration between oil projects through expansion of Sohar Refinery, while seeking to strengthen refineries and petrochemical sector through the Omani-Kuwaiti project, which will be provided with the latest technologies and expertise to create products conforming to the targeted global export markets as these will be exported to both Europe and Asia.
This project will be managed by the two parties — Kuwait Petroleum International Company, which boasts global experience in the operation and management of refineries and factories in European and Asian continents, and Oman Oil Company, which has a long
history in petroleum industry and its affiliated activities.
This partnership between the two sisterly countries, the Sultanate and Kuwait, will undoubtedly support the existing and
distinct fraternal relations in many economic and cultural fields as well as political relations aiming at protecting the region against foreign conflicts.
Last but not least, this partnership will
boost and enhance cooperation in the
economic field between the two parties, and will serve as a starting point for achieving development strategies that the parties seek in the near future.