Oman advances Liwa plastics project in Sohar

Oman Oil Refineries & Petroleum Industries Co. (ORPIC) has let a contract to Tecnimont SPA, a subsidiary of Maire Tecnimont SPA, Milan, to provide engineering, procurement, and construction services for polyethylene (PE) and polypropylene (PP) plants as part of the Liwa Plastics Industries Project (LPIP) in Oman’s Sohar Industrial Port Area (OGJ Online, Aug. 7, 2014).

Tecnimont’s scope of work under the $895 million EPC contract includes complete engineering services, equipment and material supply, and construction activities up to commissioning, startup, and guarantee test run of the high-density (HDPE), linear low-density (LLDPE) plant and PP unit, Maire Tecnimont said on Dec. 18.

The PE plant will consist of two swing units with a combined HDPE-LLDPE production capacity of 880,000 tonnes/year, while the PP plant will have a production capacity of 300,000 tpy, according to the service provider.

Tecnimont is due to begin construction by March 2016, with completion scheduled during fourth-quarter 2019.

On Dec. 17, ORPIC announced it had signed more than 15 contracts to build, operate, and finance the LPIC, including agreements with more than 20 local and international banks, financial institutions, and export credit agencies that will provide $3.8 billion to ensure the project’s completion.

ORPIC awarded a total of four LPIC EPC packages, valued at an overall $4.5 billion, as follows:

• EPC 1, for the steam cracker and associated utilities, to a joint venture of CB&I and CTCI Corp.

• EPC 2, for plastics units, to Technimont.

• EPC 3, for NGL extraction installations, to a joint venture of GS Engineering and Construction and Mitsui & Co. Ltd.

• EPC 4, for NGL pipeline construction, to Punj Lloyd Ltd.

To be located adjacent to OPRIC’s existing refinery and petrochemical plants at Sohar in order to utilize existing products currently being exported as feedstock, LPIC is due for startup in 2019, the state-owned company said.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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