Orpic, Oman Gas Company sign agreement for natural gas liquids extraction

Orpic, Oman Gas Company sign agreement for natural gas liquids extraction
The agreement was signed by Eng. Ahmed bin Saleh al Jahdhami (sitting, right), CEO of Orpic, and Sultan bin Hamed Al Burtmani, acting executive managing director of OGC.
Published: 31 July 2018 - 1 a.m.
By: Martin Menachery

Oman Oil Refineries and Petroleum Industries Company (Orpic) and Oman Gas Company (OGC) signed an agreement for the operation and maintenance of a natural gas liquids extraction (NGLE) plant and associated pipelines.

The signing ceremony was held under the auspices of Dr Ali bin Masoud al Sunaidi, minister of commerce and industry, and attended by government and private dignitaries, as well as Orpic and OGC senior executives.

The agreement was signed by Eng. Ahmed bin Saleh al Jahdhami, CEO of Orpic and Sultan bin Hamed Al Burtmani, acting executive managing director of OGC.

Under the NGLE services agreement, OGC will provide dedicated services for the operation and maintenance of Orpic's NGLE plant located in Fuhud, the upstream of its Liwa Plastics Industries Complex (LPIC) project in Sohar. A roughly 300km, 14-inch pipeline connecting the Fuhud NGLE plant with the Sohar complex will also be operated and managed by OGC as part of this arrangement.

The C2+ extracted from Fuhud's natural gas extraction plant will be combined with the existing products from Orpic’s refineries and petrochemical plants, which supports in producing further integration and flexibility as well as making the full use of the crude materials.

The services agreement will be implemented over three transitional phases throughout the project lifecycle. Each phase entails different levels of responsibility for OGC and Orpic alike.

Speaking at the signing ceremony, Al Jahdhami stated: "This agreement comes as part of the engineering, procurement and construction (EPC 3) Liwa Plastics Industries Complex project (LPIC), which is an investment of $6.7bn currently underway with a 67% overall progress and being one of three strategic growth projects implemented by Orpic; driven by its vision to be a globally competitive, downstream business that Oman is proud of.”

“This agreement with OGC marks Orpic’s trust on Omani companies and augments our relentless effort towards increasing the percentage from Orpic annual expenditure in in-country value (ICV).  LPIC will open up the potential to create over 1,000 products in the plastics processing industry as well as to enable the extraction of high-value products from natural gas for the first time in Oman".

Importantly, Orpic NGL is the second processing facility that will be managed by OGC after SLPG, in which both will leverage the Sultanate’s natural gas resources and support OGC transformation to become a leading energy infrastructure.

Al Burtmani: “OGC is the platform for the entire energy midstream segment of Oman Oil Company’s (OOC) business portfolio. One of our key responsibilities is to ensure that the infrastructure is ready not only to maintain a reliable and uninterrupted supply of natural gas to consumers wherever they are in the country, but also to maximise the value generation from this resource.”

“We aim to create an integrated technical system operator who will oversee the whole gas network in the country and integrate it with the midstream model for the gas processing facilities in the long run.”

“We are currently paving our way of transforming OGC into a globally renowned energy infrastructure utility that can be able to power Oman’s future,” Al Burtmani added.

It is worth highlighting that OGC is also laying down a new 32-inch gas pipeline parallel to the existing 32-inch Fuhud-Sohar pipeline to meet the growing gas demand in Sohar Industrial Port and supply gas to Ibri region.

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