Oman builds region's first liquid chemicals terminal

Muscat: Octal Petrochemicals has announced that work on its $50 million tank farm - the first liquid chemicals terminal in the region - is on track. The first phase of the project is scheduled to be completed by June.

The liquid chemical storage terminal located in the port of Salalah will support Octal's drive to capture a 20 per cent share of the $2.25 billion global PET (poly-ethylene terephthalate) and APET (amorphous poly-ethylene terephthalate) production business.

First phase

The first phase of the terminal will comprise two 5,000 metric tonne stainless steel tanks designed to receive mono-ethylene glycol (MEG). Discussions are in progress with Saudi Basic Industries Corporation (Sabic), the world's largest MEG producer, to supply Octal's requirements.

Octal will pump feedstock chemicals off tankers to the tanks and then pipe them 1,000 metres underground to Octal's main processing plant in the Salalah Free Zone. The advanced system removes the need for overland transport, improving safety, reliability and cost efficiency.

The second phase of the terminal, due to be completed by September 2009, will add a third 5,000 metric tonne tank to the new terminal.

The third phase, which will be completed in 2011, will increase capacity by a further six tanks. All the tanks will be located within a 10,600-square metre area reserved for Octal in the port of Salalah.

"The new tank farm is in line with our strategy to source raw materials from the Middle East in large quantities at the lowest possible cost. This tank farm delivers the raw material in the most efficient way with secure environmental safeguards," said Rashid Saif Al Sadi, a member of the board of directors of Octal Petrochemicals.

Commenting on the supply of MEG to Octal from Sabic, Al Sadi said: "Octal Petrochemicals will become one of Sabic's biggest customers for MEG as a result of this agreement."

Total investments in the plant are set to rise to as much as $1 billion upon completion with two phases of expansion scheduled for 2009 and 2011.