Thursday, March 28, 2024 | Ramadan 17, 1445 H
broken clouds
weather
OMAN
23°C / 23°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Orpic marks groundbreaking of LPIC’s $688m Fahud unit

995568
995568
minus
plus

Upstream component: The consortium of GS Engineering and Mitsui has been selected by Orpic to construct the Natural Gas Liquids extraction plant   


Business Reporter -


MUSCAT, April 27 -


Oman Oil Refineries and Petroleum Industries Company (Orpic) yesterday celebrated the groundbreaking of its Natural Gas Liquids extraction plant in Fahud in the Wilayat of Ibri — a unit that represents the upstream component (Package 3) of its $6.4 billion Liwa Plastics Industrial Complex (LPIC) project.


The consortium of GS Engineering & Construction and Mitsui & Co Ltd has been selected by Orpic to undertake the Engineering, Procurement and Construction (EPC) of this package at a cost of $688 million. The groundbreaking follows the successful foundation laying for EPC Package 1, covering the construction of the $2.4 billion Steam Cracker Unit, and EPC Package 2, pertaining to the construction of the $888 million polypropylene and polyethylene units last year. The latter two EPC packages are being executed at the industrial port in Suhar.


Yesterday’s ground breaking event was held under the auspices of Sultan bin Salim al Habsi, Secretary-General of the Supreme Council for Planning and Chairman of Orpic’s Board of Directors. Also present were dignitaries from the local community of Ibri, top officials of Orpics, and high level executives representing the contractors.


Al Habsi said, “We are delighted to celebrate the ground breaking of the LPIC EPC 3 package to build a state-of-the-art Natural Gas Liquids (NGL) Extraction Plant. LPIC is a key project to develop the downstream industry in Oman in order to enhance the petrochemicals industry and keep pace with the growing demand for plastics in the Sultanate and the region.”


Ahmed Saleh al Jahdhami, CEO, Orpic said: “LPIC is the largest transformational project undertaken in Oman which will contribute to the GDP of the Sultanate by 2 per cent and support creating a wide-ranging downstream industry in the Sultanate. Once commissioned in 2020, we are confident that LPIC will change Orpic’s product mix by extracting more value from natural gas and crude oil.”


The Natural Gas Liquids (NGL) Extraction Plant will be linked via a pipeline with the project’s main plants in Suhar as part of an integrated complex that houses also Suhar Refinery, Aromatics Plant, and Polypropylene. The project will contribute to integrated refinery and petrochemical operations and will enable the company to extract the maximum value from Oman’s oil and gas.


The Liwa Plastics project is the largest of the three strategic growth projects undertaken by Orpic, namely the Suhar Refinery Improvement Project (SRIP), Muscat-Suhar Pipeline (MSPP) and Al Jifnain Terminal 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.


SHARE ARTICLE
arrow up
home icon