Oman's Takamul planning two petchem projects
FEED studies underway for Salalah ammonia and Sohar acid projects
Omani firm Takamul Investment Co is planning to set up two large petrochemical projects in Sohar and Salalah, with front-end engineering and design (FEED) studies for both projects expected to be complete by the end of 2014.
The Sohar project will see the Oman Oil Co subsidiary set up a large metaxylene/purified isophthalic acid (PIA) plant – metaxylene being the feedstock for the production of PIA, which in turn is used as feedstock in the polyester industry.
“The PIA industry is tightly owned with very few suppliers around the world,” Gilles Desorbay, general manager – commercial and business development at Takamul Investment told Muscat Daily.
“We would like to see Oman becoming one of those key suppliers for the global polyesters industry. We believe there is a competitive advantage in setting up such a plant in Oman, because feedstock is available from the Orpic refinery in Sohar. The market for polyesters is growing dramatically, particularly in the GCC region and the Indian subcontinent,” he added.
Following the completion of the FEED study for the Sohar plant at the end of this year, an investment decision is likely to be made in early 2015 which could see an outlay of several hundred million dollars.
Desorbay added that the Sohar PIA project will mainly be driven by Takamul Investment, with Orpic likely to be a co-owner in the project.
The second project Takamul has lined up is an ammonia project in Salalah, in partnership with its parent company, the aim of which is to further processing chemicals from Salalah Methanol Co into value-added products.
“Takamul Investment and Oman Oil will develop and invest in this project. The shareholding structure is yet to be defined. The FEED phase will be completed in about a year's time. After that, we will have a precise design to invite bids from engineering, procurement and construction (EPC) contractors. The project is valued at $700mn and an investment decision is likely to be made in early 2015,” Desorbay said.