Bidding Opens for OQ Group’s Saih Nihayda NGL Extraction Plant FEED Phase

Introduction

Saudi Gulf News: OQ Group has decided to develop a new Natural Gas Liquified (NGL) extraction plant in Saih Nihayda. So OQ Group has issued FEED (Front End Engineering Design) tender. This project is a big step to diversify Oman's economy and to take more advantage from natural gas of Oman.
Bidding Opens for OQ Group’s Saih Nihayda NGL Extraction Plant FEED Phase

Key Details of This Project

  • This plant has a capacity of 48 million cubic meter of gas per day.
  • This project will connect upstream extraction (Saih Nihayda) to downstream processing and export (Duqm).
  • A new gas pipeline of 230 Km with 16-inch diameter pipe will be installed which will transport gas to port in Duqm.
  • A fractionation complex will be developed in Duqm which will separate the components of gas like ethane, propanr, butane, and pentane.
  • There is Oman Petrochemical Complex in Duqm. It will use that ethane as primary feedstock.
  • A gas supply agreement has done with Integrated Gas Company for 20 years in order of smooth operation.

Project Details

FeatureDetails
Project OwnerOQ Group (100% Ownership)
Processing CapacityUp to 48 million cubic metres per day
Pipeline Length230 km (16-inch diameter)
Annual Output1 million tonnes of gas components (Initial phase)
Key ProductsEthane, Propane, Butane, and C5+ condensates
Location (Extraction)Saih Nihayda, Oman
Location (Processing/Export)Special Economic Zone at Duqm (SEZAD)
Duration of Gas Supply20-year agreement with Integrated Gas Company

Impact of This Project

  • Oman will not only export crude oil but also it will export petrochemical and manufacturing products.
  • Duqm will be a new industrial hub. New marine ports will be developed. International trade will be increased by refrigerated LPG tankers manufacturing.
  • New jobs will be created and foreign direct investment (FDI) will increase. A 20 years agreement shows that Oman is planning for long term.

Technical Aspects of This Project

  • First of all Liquid will be separated from NGL in Saih Nihayda. A special technology called Cryogenic Separation technology is involve where gas is much refrigerated in order to separate liquid.
  • Now NGL will be transported to Duqm through pipeline. It will be separated more through fractionation tower. Ethan is very important petrochemical product. Propane and Butane will be used as LPG and will be exported.
  • Refrigerated LPG tanks will be developed. The temperature of these tanks are kept very low so gas can be exported very easily.

Oman Petrochemical Complex

FeatureImpact on Oman's Industry
Feedstock SecurityEthan which is coming from Saih Nihayda will provide cheap and continuous raw material to this complex.
Value AdditionGas will be converted to polymers and plastics instead of direct burning. The value of polymer and plastics is very high in market.
Strategic LocationIt is easy to access Asian and European market through Duqm port. It will make Oman a global supplier
Integrated Value ChainOQ Group will control upstream (Extraction of Gas) and downstream (Final Product).
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