Sohar methanol expansion is put on the back-burner

10 November 2006
Plans to build a second 3,000-tonne-a-day (t/d) methanol plant at Sohar have been put on hold, pending the signing of a gas supply agreement with the government. Oman Methanol Company (OMC), which is developing a 3,000-t/d plant at Sohar industrial port, had planned to establish a second identical facility to be called Sohar Methanol Company adjacent to its first plant.
The company structure is in place and OMC is in talks with Kreditanstalt fuer Wiederaufbau (KfW) about financing the second project, which would receive feedstock from the Oil & Gas Ministry.

OMC's first plant is under construction and is due to start commercial production in the second quarter of 2007. The company has a 100 per cent offtake agreement with Germany's Helm.

Shareholders in OMC are Trinidad's Methanol Holding International, the local Omar Zawawi Establishment (Omzest) and Germany's MAN Ferrostaal (MEED 18:11:05).

Second-phase expansions have been put on hold on a number of other petrochemical projects under development at Sohar, pending gas allocations.

As a result of the gas situation, the government is looking to develop capacity downstream from the first round of base

petrochemical projects (see page 30).

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