Pact signed to study development of new petrochemical project in Duqm

Business Tuesday 07/December/2021 17:08 PM
By: Times News Service
Pact signed to study development of new petrochemical project in Duqm

Muscat: OQ Group signed a memorandum of understanding (MoU) with Sabic to study the development of a petrochemical project in the Special Economic Zone of Duqm (SEZD). This step coincided with the visit of the Saudi Crown Prince Mohammed bin Salman to Oman.

The project involves a world-scale steam cracker unit (SCU) and derivatives units producing olefins derivatives (ethylene and propylene) are expected to utilise the feedstock by-products from the SCU.

The agreement was signed by Talal Bin Hamed Al Awfi, CEO of OQ Group and Abdulrahman Al-Fageeh, Executive Vice President for Petrochemicals, who signed the MoU on behalf of Sabic.

Commenting on the MoU, Al Awfi welcomed the agreement and said: “This agreement focuses on the development of a new petrochemical project in the Duqm Special Economic Zone. OQ aims to enhance the integration of the refinery and petrochemical industries with other downstream industries as part of its vision to maximise the added value and contribute to the development of downstream industries. We look forward to enhancing our strategic partnership with Sabic and benefiting from its expertise to carry out this project.”

For his part, Al-Fageeh stated: “We are honoured to sign this MoU with OQ as our focus has always been on key collaborations and on building fruitful relationships for sustainable growth, regionally and globally. With our diverse global portfolio, along with our manufacturing competencies, we are confident of helping to drive the development of downstream industries in Oman, just as we are currently a key enabler in the achievement of Saudi Arabia’s Vision 2030 objectives.”

OQ, ATC collaborate

OQ signed a non-binding Memorandum of Understanding (MoU) with the Aramco Trading Company’s (ATC) to explore joint commercial opportunities in the energy sector between the two companies.

The MoU was signed in Oman by OQ Group CEO Talal Hamid Al Awfi and ATC CEO Ibrahim Al Buainain.

The two parties intend to collaborate directly or through their affiliates on exploring business prospects in the Omani port of Duqm and nearby crude oil storage terminal of Ras Markaz.

Under the MoU, the parties will undertake a joint review of ATC supplying feedstock to Duqm Refinery & Petrochemicals Industries Company (OQ8), as well as possible offtake of oil products by ATC from OQ8.

ATC and OQ may expand the scope of the MOU to include renewables, waste streams, green ammonia as well as green hydrogen.