Dubai: Oman’s state energy company OQ has signed an agreement to develop a petrochemicals complex in the Duqm economic zone with Kuwait Petroleum International and Saudi Basic Industries Corp (Sabic), state news agency ONA reported on Wednesday.
The complex will consist of a steam cracker and derivative units, and a natural gas liquid (NGL) extraction facility.
The project intends to monetise NGLs and other feedstocks from OQ and KPI’s joint venture refinery OQ8 in Duqm to manufacture petrochemical products targeting growing markets linked to energy transition, clean technologies, mobility, construction, durable goods, healthcare and packaging amongst others.
There also plans to deploy state-of-the-art technologies to minimise carbon footprint and incorporate circular economy aspects and commit to high environmental standards.
The agreement was signed by Talal Hamid Al Awfi, OQ Group CEO, Abdulrahman Saleh Al Fageeh, CEO (A) of Sabic, and Shafi Taleb Al Ajmi, CEO of KPI.
Commenting on the agreement, Talal Al Awfi said: “The agreement is a significant milestone reached between the partners and comes at an important time in Oman with the near completion of the OQ8 refinery project in SEZAD (Special Economic Zone at Duqm) being undertaken by OQ and KPI through the OQ8 joint venture. This agreement also comes in line with Oman Investment Authority plans to attract foreign investments to support realise Oman’s vision 2040 in its endeavour to diversify Oman’s economy.”
Abdulrahman Al Fageeh, Sabic CEO (A), added: “This agreement enables us to identify and assess opportunity for ambitious and sustainable growth by bringing together our capabilities, expertise and technologies and work collectively with our partners. Our involvement in this project is consistent with our growth strategy and Saudi Vision 2030 goals to develop a stronger downstream business addressing challenges in petrochemicals industry such as carbon neutrality and providing diversified and sustainable products.”
KPI’s President and CEO Shafi Taleb Al Ajmi commented: “Working with our regional partners supports KPC’s 2040 strategy for growth in the petrochemical industry and enhances integration between the refining and petrochemical sectors. The project also supports the economic growth and development of SEZAD.”
