By Business Reporter — MUSCAT: April 23 - Orpic will celebrate the ground breaking of its Natural Gas Extraction Plant, representing the Engineering and Procurement and Construction (EPC) Package 3 of its $6.4 billion Liwa Plastics Industries Complex (LPIC) Project, at Fahud in the Wilayat of Ibri on Thursday, April 27, 2017. The event will be held under the patronage of Sultan bin Salim al Habsi, Secretary-General, Supreme Council for Planning, who is also Chairman of Orpic. Also in attendance will be a number of local dignitaries from the Wilayat of Ibri.
A consortium of two corporations GS Engineering and Construction and Mitsui & Co Ltd has been awarded the contract to execute the EPC Package 3 at a cost of $688 million. The package represents the upstream component of the giant scheme which has its downstream elements located within the industrial port at Suhar.
LPIC will firmly reinforce Orpic as a recognized player in the international petrochemicals marketplace, enabling Oman, for the first time, to produce polyethylene – a form of plastic that rates highest in terms of global demand, while also increasing the current production of polypropylene.
LPIC is the largest of the three strategic growth projects undertaken by Orpic to fulfil its vision of building an Omani integrated refining and petrochemical business. This project will be the first-of-its-kind in the Sultanate and will enable Oman to take the downstream plastics industry to the next level.
Upon commissioning in 2020, LPIC will transform Orpic’s product mix and business model, double company profit, create new business opportunities, generate significant employment opportunities and support the development of a downstream plastics industry in Oman.
Following commissioning, plastics production is forecast to have increased by more than 1 million tons, giving Orpic a total of 1.4 million tons of polyethylene and polypropylene production. With the highly integrated complex in Suhar consisting of Orpic’s Refineries, Aromatics plant, Polypropylene plant, steam cracker and the downstream Polypropylene and Polyethylene units, the operation will be considered as one of the finest integrated refinery and petrochemical facility combinations in the world, and will achieve the maximum value-added for Oman’s hydrocarbon resources.
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