Oman Chlorine inks $70m Qatar chemical plant deal

Joint venture to be set up for Mesaieed Industrial City

NEWS, Projects, Chemical plants, Gulf Chlorine WLL, Joint venture, Mesaieed Industrial City, Oman Chlorine, Qatar

Oman Chlorine is to set up a $70m joint venture (JV) chemical plant in Qatar.

The company announced that its Qatar-based sister company Gulf Chlorine WLL signed a contract with a leading specialised international company for engineering, supply and construction of the new plant at the Mesaieed Industrial City in Qatar.

The plant will produce caustic soda, acid and other related products, Oman Chlorine said in a filing to the Muscat Securities Market (MSM).

Gulf Chlorine WLL is 51% owned by Oman Chlorine.

Speaking to Muscat Daily, a senior official of Oman Chlorine said the JV plant in Qatar is expected to involve an investment of $70m and its capacity will be 70 tonnes per day.

In November last year, Oman Chlorine's Abu Dhabi-based sister company Union Chlorine LLC, which is 48.8% owned by Oman Chlorine, also signed a contract for the construction of a similar $70m plant in the ICAD Industrial Zone in Abu Dhabi.

The capacity of the Abu Dhabi plant will also be 70 tonnes per day and it will be operational by the fourth quarter of 2015. The plant will produce caustic soda, acid and other related products.

The official said, “We are capitalising on our relationships with the oil and gas industry in the region. The new plants in Abu Dhabi and Qatar are expected to support the strategic operations of Oman Chlorine in neighbouring markets and expand its existing business with oil and gas service companies operating in the region. ”

The new chemical plant in Qatar is expected to commence trial production in the fourth quarter of 2015.

In the sultanate, Oman Chlorine owns and operates a chloralkali plant in Sohar. The company manufactures hydrochloric acid, caustic lye and sodium hypochlorite. The company also manufactures value-added products like caustic flakes and calcium chloride.

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