According to Muscat Daily article published on January 15, 2023, OQ, Oman’s global integrated energy group, on Sunday inaugurated its new ammonia plant in Dhofar governorate with an investment cost of about US$463mn and a production capacity of 1,000 metric tonnes per day of liquid ammonia.
The inauguration ceremony was held under the patronage of H H Sayyid Marwan bin Turki al Said, Governor of Dhofar, in the presence of a number of their excellencies, sheikhs, CEOs and local dignitaries.
H H Sayyid Marwan toured the facilities of OQ’s new ammonia plant where he was briefed about the production stages and the role played by the plant in supporting the sultanate’s economic diversification.
Like other strategic development projects of the group, OQ’s ammonia plant in Dhofar contributes to enhancing the in-country value. The value of OQ’s procurements from Omani companies for this project amounted to about US$199mn. The project has also contributed to creating many job and training opportunities. Additionally, it has supported some social investment initiatives in Dhofar governorate.
In his speech at the inauguration ceremony, Talal al Awfi, CEO of OQ Group, said, “The ammonia plant is another economic asset that is being added to OQ’s investments in Dhofar governorate which houses three major projects of the group including a methanol plant and Salalah LPG plant, ammonia plant, as well as Raysut Petroleum Products Storage Terminal, which is the oldest facilities of OQ Group in Dhofar.”
Awfi said that the new ammonia plant is integrated with the existing 1mn tonnes per year capacity methanol plant, which will enable OQ Group to rationalise cost and optimise performance and production efficiency.
He informed that the plant will export its products to the international markets via Port of Salalah through OQ Trading Limited, the trading arm of OQ Group. He noted that the demand for ammonia products in the global markets is witnessing constant growth leading to higher returns and rendering the project highly feasible.
“The economic significance of the ammonia plant is paramount in light of its integration with other OQ projects. Ammonia is used in the production of green hydrogen, which is a key component of the OQ Energy Transition Agenda,” Awfi added.
Ammonia is used as a key ingredient in the production of fertilisers and is an important intermediate chemical in the manufacturing of synthetic resins, detergents, coolants, synthetic fibres, and polyurethanes, among other applications.
Economic diversification
Speaking on this occasion, H H Sayyid Marwan said, “The national projects in the petrochemicals sector, implemented by Oman Investment Authority (OIA) through OQ Group, would contribute to enhancing the economic growth and diversification plans in the sultanate to keep pace with the overarching development under the wise leadership of His Majesty Sultan Haitham bin Tarik. These projects also reinforce the economic diversification efforts in the country to be in line with Oman Vision 2040.”
H H Sayyid Marwan expressed his happiness over the success achieved with the inauguration of OQ’s ammonia plant which was built in line with the highest levels of operational efficiency. He also indicated that this reflects the efforts exerted by OQ Group to leverage the use of Omani natural resources, maximise its benefits and boost the processing industries in the sultanate.
He pointed out that the plant will contribute to supporting the economic activities in the energy sector, particularly for small and medium enterprises (SMEs) and provide direct and indirect employment opportunities for Omanis.
On his part, Mulhim bin Bashir al-Jarf, deputy president for investment at OIA and chairman of OQ Group, said, “The ammonia plant is one of the strategic development projects owned by OQ. It goes in line with the drives of OIA to promote investment in heavy and downstream industries by leveraging the Omani natural resources with the objective of increasing to its role in increasing their contributions of to the country’s GDP.”
“We hope that this project would contribute to achieving added value from its products that will be exported to international markets. This will enhance the position of Omani exports and attract more foreign investments to the economic sectors according to the priorities of Oman Vision 2040,’ Jarf added.
