Oman Gas Company signs $820m worth of deals for LPG project
The Salalah LPG project is expected to produce around 272,000t of liquefied gas, create 140 job opportunities once operational, and generate an annual income of $200m
Oman Gas Company has inked agreements worth $820m (OMR315.7m) for the Salalah liquefied petroleum gas (LPG) project, it has been revealed.
Among the agreements that has been signed is a deal between Oman LNG and the Ministry of Oil and Gas for the right to build, own, and operate LPG extraction utilities for the project, Oman News Agency (ONA) reported.
The agreement was signed by Eng Salim bin Nasser al- Oufi, undersecretary of the Ministry of Oil and Gas, and Eng Isam bin Saud al- Zadjali, chief executive officer of Oman Oil Company, owner of Oman Gas Company.
The gas company also signed a marketing agreement with Oman Trading International Company, as well as a sub usufruct deal with Salalah Free Zone Company allocating around 20ha for the project at Salalah Free Zone.
Meanwhile, around 8ha of space at the Salalah Port will be allocated for LPG export facilities, as indicated in an agreement with Salalah Port Services.
According to ONA, agreements covering credit facilities were also signed by eight local, regional, and international financial firms. They are BankMuscat, SCB, Bank Sohar, Qatar National Bank, Société Générale SA, Ahlibank, AB Corp, and Ahlibank Bahrain.
Quiting al-Oufi, the news agency said that the project is expected to produce around 272,000 tonnes of liquefied gas, create 140 job opportunities once operational, and generate an annual income of $200m (OMR77m).
Around 10% of the 272,000t expected output will reportedly be utilised at the local market, while the rest will be exported through International Marketing Company.
The project is expected to be operational by early 2020.