Tuesday, June 9, 2009

Duqm.. A Breathtaking Development.. (Part 4)

Refinery & Petrochemical Complex

Al Wusta region is distinguished for having a great number of oil wells. One of the possibilities could be setting up a space-oriented industry such as oil refinery and storage. Gradual shifting of one of the refinery and export functions from Mina Al Fahal to Duqm is another possible option before the government. The second option gains ground based on the fact that the only oil export terminal of Oman at Al Fahal port has certain disadvantages such as it is surrounded by populated area, offshore area is also busy for commercial shipping activities, oil fields are far away and oil is transported over the mountains, and environmental issues arise from refinery work and marine operations. If these factors are taken into consideration, the future expansion of the oil export at Mina Al Fahal does not look a possibility, and Duqm seems be the right alternative.

Also, the government is in talks with international companies about investing in the proposed refining/petrochemicals complex at Duqm. The project cost is estimated at US$7 billion. The company will be owned by a new JV to be formed in partnership between the government and international investors. The refinery will have a capacity to process 300,000 barrels a day using Oman export blend, a light crude. The oil will be transported to the refinery complex through a new pipeline from the country's northern fields. Diesel output from the refinery will be exported, while fuel oil will be sold in the local market, according to an official. The refinery will comprise the world's largest polypropylene plant with a capacity of 1.2 million to 1.5 million tonne/year, a 2.8 million tonne/year aromatics plant and a 750,000 tonne/year styrene plant. Construction of this complex is due to start at the end of 2008 and will be completed in 2012. However, according to the Ministry of Oil & Gas in Oman, everything is at a planning stage and nothing has been finalised yet.

Duqm Airport

A new modern, civil airport is envisaged in the Duqm master plan. The region airport will come up on a span of 2,720 hectares, and will meet the industrial needs of the area. It will also complement the port facilities in the town. The government has recently asked US engineering consultancy firm Parsons International to advise it on the design and construction of this airport. Parsons will also assist the government in preparing tender documents, cost estimation and selecting an EPC contractor for building the airport. The required investment and other details of the airport project will be known only after the consultancy agency conducted a detailed study and design the airport.

Power & Desalination Project

The master plan envisages a mega power station. The first phase of the project, with a capacity of 63MW, will be completed by 2011. The capacity will be scaled up to 200MW during the later phases. The power generation facility will be made up of a number of existing diesel-powered generation plants that are proposed to be dismantled and installed at Duqm from their present locations at Salalah and Sur. Salalah has five such diesel-powered plants, while Sur has four. These were made redundant by the arrival of natural gas-based power generation, which now meets much of the Sultanate's electricity demand. Besides, there's a separate project for the construction of a 6,000 cubic metres per day capacity reverse osmosis (RO) desalination plant. According to officials, 5.6 million gallons water shall be available by year 2011. The Rural Areas Electricity Company (REAC), a subsidiary of the state-owned Electricity Holding CompanyElectricity Holding Company SAOC, is overseeing the development of these projects.

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The people who brought this blog into life.

The people who brought this blog into life.
Eng. Jun Valero, Eng. Dex Listanco, Eng. Nestor Tugade, Eng. Jeff Gutierrez, Eng. Oscar Plopinio, Eng. Arnold Palmiano, Eng. Gilbert Cencil, Eng. Josh Castre, Eng. Rene Lamera, Eng. Ehd Arabe, Eng. Isagani Ty, Eng. Edwin Pagdanganan, Eng. Jovert Sollano