Muscat – As part of celebrations marking the 51st National Day of the Renaissance, Liwa Plastics Industries Complex (LPIC), a transformational project of OQ – the global integrated energy group of the sultanate – will witness the official commissioning ceremony at its site in Sohar Industrial Port on December 20.
The successful implementation of the mega petrochemicals project, with an investment of RO2.7bn, exemplifies the Omani government’s efforts to diversify revenue sources, support local manufacturing opportunities, and most importantly, to add value to the country’s natural resources by opening up avenues for investments in downstream petrochemical industries.
Liwa Plastics achieved an in-country value (ICV) contribution amounting to approximately RO578mn during the construction phase through the localisation of various goods and services procured from Omani companies, including small and medium enterprises.
LPIC consists of four EPC (engineering, procurement and construction) contracts, of which the second, third and fourth EPCs have been launched, while the first EPC (Steam Cracker Unit) is at commercial commissioning.
This phased launch is in line with the delivery programme prepared by project management teams to enable the overall complex to reach the full production capacity by the first quarter of 2022.
Kamel bin Bakheet al Shanfari, acting CEO of OQ Downstream, said, “LPIC is the biggest of OQ Group’s current investments with the potential to position OQ as a major global petrochemicals producer.
When fully operational, Liwa Plastics will contribute to a significant increase in OQ’s portfolio of petrochemicals and associated chemical commodities. This includes a momentous increase in its polymer output, which will be targeted at local and global markets.”
The project, he further noted, will boost the industrial sector through the annual production of 838,000 tonnes of polyethylene – a raw material used in nearly 40 per cent of plastics-based products and commodities produced globally, and about 215,000 tons of polypropylene.
Output of these two polymers will eventually rise to 1.4mn tonnes annually.
Since the start of soft operations earlier this year, Liwa Plastics roughly achieved a total output of 474,000 tonnes of petrochemicals as of October-end 2021, he stated.
The complex, he explained, consists of a number of key components, including a gas extraction plant located in Fahud, which is linked to the main plant within Sohar Industrial Port by a 300km-long, 14-inch pipeline.
At the heart of the main plant is a Steam Cracker Unit that processes the light hydrocarbon gases produced by OQ’s other plants in Sohar as well as rich gas coming from Fahud. Integrated into the complex are polymer plants designed to produce High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE), and polypropylene. The overall project has been designed and constructed in line with international best practices and standards, and comparable with petrochemical projects in its class anywhere in the world.
Incorporating the latest technologies, the LPIC project also meets the most stringent international benchmarks for environmental safety – standards certified by an environmental consultancy firm accredited by the Environmental Authority. The certification has also being endorsed by various experts and the project’s financiers, he added.