Oman Gas Company (OGC) has tendered the main contract for its proposed gas pipeline linking the Saih Nihayda gas processing plant to the port of Duqm on the central coastline.
The state-owned company has asked interested contractors to submit engineering, procurement and construction (EPC) bids by 18 August, according to sources familiar with the project.
The project scope consists of a 36-inch diameter, 230-kilometre pipeline running overland from Petroleum Development Omans gas operations at Saih Nihayda, and associated facilities.
The EPC contract is expected to be awarded by the end of 2014 with the projects completion scheduled 2017.
OGC announced in October 2013 that it is planning to invest $3.5bn into improving the sultanates gas infrastructure.
The company 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.
OGC is 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 homes in the capital.
OGC is also planning to extract ethane, LPG and condensate from pipeline gas to deliver to industries in Sohar.