India’s Punj Lloyd wins $304m gas pipeline deal in Oman

Muscat: A contract to build a 300-km-long natural gas liquid (NGL) pipeline as part of the $6.4-billion Liwa Plastic Industries Complex was awarded to Punj Lloyd by Oman Oil Refineries and Petroleum Industries Company (Orpic).
The Indian conglomerate engaged in engineering, procurement and construction also bagged another contract to build a 301-km-long natural gas pipeline from Oman Gas Company. The cost of these two contracts is estimated at $304 million.
The 14-inch pipeline for natural gas liquid will be between New Fahud NGL plant and a steam cracker unit (part of Liwa Plastic Industries Complex) at Sohar, the company said in a filing to the Bombay Stock Exchange.
In view of increased gas demand and to ensure availability of supply, Punj Lloyd will be laying another 32-inch gas pipeline to the existing 32-inch Fahud-Sohar pipeline for Oman Gas Company. The pipeline is being laid to supply gas for North Power station.
The scope of the work also includes construction of block valve and pigging stations. Both the pipelines need to be completed within 38 and 35 months, respectively.
“We feel proud as we were selected due to the strength of our technical and financial bids. Also, Punj Lloyd was the only Indian contractor in Oman to be awarded a seizable contract of the Liwa Plastic Industries Complex mega complex. Our past experience of delivering strategic projects in Oman and our prowess in pipelines globally, both stood testament to our capabilities,” said Atul Jain, president and chief executive officer – pipeline and tankages – Punj Lloyd.
“Liwa Plastic Industries Complex will enhance the in-country value of products and will provide the necessary material to grow a downstream sector in the Sultanate, with a focus on the plastic industry. LPIC will also enhance the contribution of the industrial sector towards domestic production to 9 per cent by 202 and will create more than 13,000 new employment opportunities for Omanis,” added Sultan bin Salim Al Habsi, chairman of Orpic.
The group’s order backlog stands at Rs2,540 billion. The order backlog is the value of unexecuted orders on December 31, 2015 and new orders received thereafter.