Muscat – OQ Group on Thursday launched a front-end engineering design (FEED) tender for the Saih Nihayda Natural Gas Liquids (NGL) extraction plant. The project will have a processing capacity of up to 48mn cubic metres per day and represents a strategic step towards strengthening the energy sector ecosystem and maximising the added value of natural gas in Oman.

The move is expected to strengthen the regional gas supply chain and support the sultanate’s industrial diversification plans.

The new facility will form part of OQ Group’s fully integrated NGL value chain, linking upstream extraction in Saih Nihayda with processing, fractionation, storage and export infrastructure at the Special Economic Zone at Duqm (SEZAD), according to an Oman News Agency report.

The development includes a dedicated 230km long, 16-inch pipeline and a downstream fractionation complex in Duqm designed to separate key gas components. Output will include ethane, propane, butane and C5+ condensates for use in petrochemical and manufacturing industries in Oman and across regional markets.

Ethane extracted from the facility is expected to serve as a key feedstock for the planned Oman Petrochemicals Complex in Duqm, positioning the project as a critical enabler within the country’s evolving industrial platform.

The launch of the FEED tender reflects OQ Group’s commitment to supporting the government’s economic diversification agenda and its continued focus on maximising the value of Oman’s natural resources. The project is also expected to reinforce the position of the Special Economic Zone at Duqm as a global destination for high-quality industrial investment.

The project scope includes the construction of an NGL extraction plant in Saih Nihayda and an advanced fractionation facility in Duqm capable of separating approximately one million tonnes of gas components annually in its initial phase. It will also involve the development of storage and marine export facilities, refrigerated LPG tanks and dedicated export lines directly linked to the liquid berth at the Port of Duqm.

Notably, OQ has signed a 20-year gas supply agreement with Integrated Gas Company to secure the required natural gas volumes for the facility. The long-term arrangement is expected to enhance feedstock reliability and support multi-decade planning for Oman’s industrial expansion.

Wholly owned by OQ Group, the Saih Nihayda NGL extraction project underscores the company’s commitment to advancing Oman’s petrochemicals sector. It further demonstrates progress in delivering major projects designed to attract investment and strategic partnerships in support of sustainable economic growth, while serving as a key feedstock source for the planned Oman Petrochemicals Complex in Duqm.