Gas supply agreement to the Special Economic Zone in Duqm (SEZD) will become operational by 2019, according to a top official from Oman Gas Company.
“During the past period, several contracts and tenders for the projects have been awarded including the tenders for the supply of gas pipes and extending gas pipes from Saih Nahida to Duqm. More tenders and contracts of this project will be awarded this year and will result in qualitative leap in SEZD,” said Sultan Bin Hamad Al Bartamani, Acting CEO of Oman Gas Company (OGC) in a statement to SEZD Magazine, which will be published next week.
“The contractor of the gas pipeline extension project from Saih Nahida to Duqm has recently initiated work,” he said.
The construction contract has been awarded to an Egyptian company.
As for the gas quantities to be pumped to Duqm, Bartamani said that the gas supply station is expected to receive about 15 million cubic meters of gas per day during the first stage as per the agreement signed between the Ministry of Oil and Gas and Oman Gas Company (OGC). This quantity is enough for feeding Duqm Refinery, Marafiq Company and the other industries that will be set up in the zone.
As per its design, the capacity of the station will be increased to 25 million cubic meters per day when the need arises, depending on the SEZD’s expansion in the upcoming period. Saih Nahida plant will receive gas from BP-Oman’s Khazzan oilfield and from PDO’s Saih Nahida and Saih Rawl oilfields.
The natural gas production in Oman will get a boost once BP starts production from its Khazzan tight gas project, which is expected to add 1 billion cu ft of gas per day, starting by the end of the year.
The free zone has attracted some $11 billion in investment for various projects, which include a major refinery and a series of industrial ventures by Chinese investors.
The key projects, which are in different stages of planning and implementation, include the 230,000 barrels per day (bpd)-capacity refinery, a methanol-to-olefin project, a coal-fired power project, an automobile unit, a project for manufacturing solar panels, a five-star hotel, a desalination plant and a sabacic acid unit.
Sezad’s efforts to attract investment into the zone have been successful. The authority is looking at some more projects, including one by a pharmaceutical company from India.
Oman News Agency