Oman is planning to invest $3.5bn into improving its gas infrastructure and optimising its gas usage through the state-owned Oman Gas Company (OGC), according to the group’s chief executive officer (CEO) Yousuf bin Mohammad al-Ojaili.

OGC will focus on extracting liquefied petroleum gas (LPG) and natural gas liquids (NGL), establishing more petrochemicals and gradually replacing LPG usage in houses with piped gas.

“A large opportunity exists to extract valuable components and expand petrochemical industry in Oman,” said Ojaili, speaking at MEED’s Oman Projects Forum in Muscat on 29 October.

Ojaili outlined several projects OGC plans to undertake, including a 230-kilometre pipeline linking the Petroleum Development Oman’s (PDO’s) Saih Nihayda gas processing plant to the emerging port of Duqm on the central coastline. The pipeline is expected to be completed in 2017.

The company is also planning an LPG extraction plant at the southern industrial hub of Salalah and a Muscat city gas project, to increase the supply of gas piped to houses.

OGC is also planning to extract ethane, LPG and condensate from pipeline gas to deliver to industries in Sohar.

OGC, which is fully owned by Oman Oil Company (OOC), transports about half of Oman’s domestic gas, with the other half handled by PDO.