Muscat: The state-owned Oman Refineries and Petroleum Industries Company (Orpic) is planning to invest $5-$6 billion in the next five years for expanding Sohar Refinery, building Liwa Plastics project and for setting up a 280-km long crude oil pipeline between Muscat and Sohar. "This is a heavy investment programme," said Musab Al Mahrouqi, CEO of Orpic.
Orpic is planning to enhance Sohar Refinery's processing capacity by 60,000 barrels per day (bpd) to 1,76,000bpd, to build a $3.6 billion-project (Liwa Plastics) to produce polypropylene, polyethylene and benzene and to set up a 280-km long pipeline connecting Sohar and Muscat refineries.
Al Mahruqi said that all the three projects are on track.
Muscat-Sohar pipeline EPC contract referring to the proposed Muscat-Sohar pipeline project, Al Mahruqi said; "We hope to award the EPC contract for the first phase between Mina Al Fahal refinery and airport within few weeks and the work will start in the first quarter of 2014."
Liwa Plastics Feed contract "We are in the process of selecting technology (for Liwa Plastics project) and hope to award the front engine engineering design (Feed) contract before the year-end," noted the Orpic chief. "Feed project will take 12 to 14 months to complete." Liwa Plastics project is an integrated venture, which will have six components – a gas extraction plant in Fahud, a 300-kilometer-long pipeline between Fahud and Sohar for transporting gas, a steam cracker unit, an HDPE plant, an LLDPE plant and a polypropylene plant. The petrochemical project, which will enhance fuel and plastics production tremendously, is scheduled for commissioning by 2018.