Project has yet to reach financial closure
The $660m Luban ammonia plant located in southern Oman has transitioned into the engineering, procurement and construction (EPC) phase.
The Salalah-based plant, which is set to produce 1000 tonnes-a-day of ammonia upon commissioning was awarded to Canadian engineering firm SNC-Lavalin in March. The contractor has started early works programme.
The authorisation for EPC comes before the project has reached financial closure, which was expected in June.
MEED reported that a $720m loan offering by developer Salalah Methanol Company (SMC) was subscribed 2.5 times.
Omani firm Galfar Engineering was awarded a two-year $62m contract for the construction and partial procurement for the methanol plant.
The Luban facility will produce ammonia using a feedstock of hydrogen purge gas from the nearby methanol plant operated by SMC - a wholly-owned subsidiary of Oman Oil Company.
The Salalah chemicals project is part of the sultanates efforts to develop its downstream sector at ports such as Duqm and Sohar.
You might also like...
Contractors win Oman Etihad Rail packages
23 April 2024
Saudi market returns to growth
23 April 2024
Middle East contract awards: March 2024
23 April 2024
Swiss developer appoints Helvetia residences contractor
23 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.