A key project set up as part of the China-Oman Industrial Complex in the Special Economic Zone (SEZ) in Duqm is set to commence operations this week.
Duqm Hongtong Piping LLC, set up with an initial investment of $6 million, will begin production of Reinforced Polyethylene Pipes (RPP) with an eye on domestic, regional and international markets.
The plant has a capacity to produce around 1,200 kilometres of non-metallic pipes suitable primarily for the oil and gas industry and specifically for the transport of hydrocarbon fluids through piped networks.
However, with further upgrades, the plant can be scaled up to achieve a three-fold increase in output, as well as introduce a range of thermo-polyethylene pipe systems for use in water and gas distribution networks, civil engineering, sewer water treatment, and other applications.
Plant officials also see the project’s piping systems as serving as high-quality, locally manufactured substitutes to imported products, thus contributing to In-Country Value (ICV) objectives, as well as helping conserve foreign exchange outflows through import substitution.
The ICV component of the project’s supply chain is expected to climb to over 90 per cent when the plant begins sourcing its raw material requirements of polyethylene from Liwa Plastics, the wholly government-owned petrochemicals scheme, which was recently brought into operation at Sohar Port.
As the only plant of its kind in the Sultanate to manufacture long-length reinforced thermoplastic pipes, Duqm Hongtong is hopeful of meeting at least 15 per cent of the country’s domestic requirement of RPP pipes. Output the plant meets the quality specs of the American Petroleum Institute (API).
The upcoming launch of the project also bodes well for new investment inflows into the China-Oman Industrial Complex planned on a 11.72 square kilometre site within the SEZ at Duqm.
First unveiled in 2016, the industrial park is proposed to host a diverse slate of petrochemical, refining, heavy and light industrial units, renewable energy schemes, and e-commerce and logistics projects totalling over $10 billion in investments. (With inputs from ONA)