BP, Oman Oil to conduct feasibility study for acetic acid project

Business Wednesday 01/November/2017 17:31 PM
By: Times News Service
BP, Oman Oil to conduct feasibility study for acetic acid project

Muscat: British oil giant BP and Oman Oil Company are conducting a feasibility study for building a major acetic acid project in Duqm, said Yusuf Al Ojaili, president of BP Oman here.
“We hope the project to be on stream by 2023-2024, in line with the development of a petrochemical complex by Duqm Refinery,” he added.
According to earlier reports, the project with a projected cost of $1 billion would manufacture acetic acid using BP’s patented technology–the SaaBre process. This is a new process for converting synthetic gas to synthetic acid, which helps in reducing manufacturing costs.
“Recently, we had a discussion with our partner and the government and both parties showed an interest in developing the project,” he said, adding; “It has a lot of potential for developing downstream derivatives in the Duqm area.”
Acetic acid is a versatile intermediate chemical, used in a variety of products, such as paints, adhesives and solvents, as well as in the production of purified terephthalic acid, used extensively for manufacturing polyester.
Few years ago, BP has signed a Memorandum of Understanding (MoU) with the Ministry of Oil and Gas to build the project, which will be of strategic importance to Oman’s economy.
Oman has already started a pipeline project to transport natural gas to Duqm from central Oman since natural gas is the feedstock for several petrochemical industries planned in Duqm. The 290 kilometre-long pipeline will be completed in 2019.