Oman Daily Observers reported that Oman Gas Company is studying a number of initiatives designed to add value to the country's gas resources.
Mr Maktoom al Matani GM of Engineering and Technical Services OGC said that the proposed ventures include a citywide natural gas distribution network for Muscat City to replace the current system of LPG based supply for domestic cooking purposes. Also envisioned is a major initiative to extract commercially valuable LPG butane, propane and naphtha from natural gas for use as feedstock for added value downstream processing.
Mr Al Matani said that OGC was also weighing the feasibility of extracting natural gas liquids which can be used as feedstock for a Steam Cracker Plant integrated with Sohar Refinery. The proposed ventures were all part of a new effort by OGC and the Omani government to optimize the utilization of the nation's gas resources.
The focus of OGC and the nation is on the better utilization of gas with an emphasis on two objectives: to diversify the economy and income sources and to create employment opportunities for Omanis. In fact, there are immense economic gains to be derived from gas utilization and downstream projects. The further you go down the value chain, the greater are the returns. Having served the nation for the past 12 years as the transporter of natural gas, OGC is now keenly exploring downstream opportunities.
Mr Al Matani said that "OGC began years ago to think of ways to maximum the value of the gas, how we can shift from being a shipper of gas to playing a vital role in the economic development of Oman. Towards this end, we have started to work on an ample number of initiatives which could add value to our resources as well as contribute to in country value goals."
OGC is working with the Ministry of Oil and Gas and other stakeholders, including PDO for the establishment of an LPG extraction plant in the south of the country. OGC came with idea to extract LPG, propane, butane and naphtha from the gas and convince the PDO not to extract LPG from the Rabab field but to accept rich gas in the pipeline so the LPG and other components can be extracted as part of this project.
Mr Al Matani said that LPG liquid, currently sold at a subsidized cost of USD 60 per tonne fetches as much as $900 per tonne on the open market. In addition to this premium value, LPG can be processed into commercially value components such as propane butane and naphtha which in turn can be used as feedstock for downstream processing.
The project is very attractive. Besides driving the downstream industry in the south of Oman, it will create hundreds of jobs for Omanis. Further, it will open another front on the downstream side. In fact, we are talking to Oman Oil Company downstream subsidiary Takamul and Oman Trading International to open propane and butane based industry in Oman.
Additionally, OGC is studying the feasibility of extracting natural gas liquids from natural gas. The goal is to use NGL as feedstock for a proposed Steam Cracker facility integrated with Orpic's Sohar refinery to produce an array of highly valuable products which in turn can be processed further downstream. At the moment we are about to commence a detailed consultancy study to make sure we get a good solution.
