OQ has announced starting the commissioning phase of its state-of-the-art Liwa Plastics Industries Complex (LPIC) with a total investment of $6.7 Billion. This marks the execution of the final stages of construction for all four packages leading up to commercial production in Q3 2020.
“We are establishing a state of the art integrated refinery and petrochemical facility combinations in the world,” said Ahmed Al Jahdhami, Chief Executive Officer for Downstream. “With LPIC coming online, we are one step closer to realizing our vision for diversifying our Downstream portfolio in Oman. This transformational project will firmly put the Sultanate on the global petrochemicals map and enhance OQ contribution to the national GDP.
LPIC is considered a key asset in the company’s long-term strategy to develop an integrated hydrocarbon value chain. The aim of the project is to create value-added products derived from crude oil and natural gas. LPIC redirects high-value by-products to deliver high-grade polymer products for the local and international markets. The project will boost OQ’s production of high-grade polyethylene and polypropylene to 1.5 million tonnes per annum. Shedding further light on the project’s importance, Khalid Al Ghaithi, LPIC Operations General Manager said, “LPIC marks the beginning of a downstream plastics industry in Oman. Not only will the country now have the capacity to produce two different kinds of polymers, but will also have the local expertise to do so.”
LPIC’s has provided vast job and training opportunities which in turn has helped create a pool of specialized national talent. A testament to this is Khalifa Al Makhmari, EPC1 Manager. He said, “LPIC is a mega project and the steam cracking unit (SCU) is the heart of it. I am proud to be part of this landmark complex and gain a great deal of knowledge in petrochemical projects. LPIC has built in-house capabilities for future petrochemical projects in the Sultanate.”
Furthermore, LPIC has also injected over US$ 1.5 Billion in local goods and services, deepening the impact of the company and driving the transformation of the Sultanate's hydrocarbon industry.
With the global market for plastics growing, LPIC will enable Oman, for the first time, to produce polyethylene, the form of plastic that rates highest in terms of global demand as well as increase the current production of polypropylene. OQ has also ensured the future-readiness of LPIC by implementing the latest technological advancements at every stage of its construction. Built in accordance to the highest International Standards and Implemented with best available technology, LPIC sets an industrial benchmark for projects around the world.
In the light of the current global Corona virus pandemic, OQ has implemented strict health and safety precautionary measures that adhere to government directives in combating COVID-19. Its agile business continuity model has ensured continuity of production from its refineries and continuing the progress of a number of mega projects while ensuring the wellbeing of its teams at every level of operation.
About Liwa Plastics Industries Complex (LPIC)
LPIC comprises a gas extraction plant in Fahud; a 300 km pipeline from Fahud to Suhar; a steam cracker plant; and polymer plants (HDPE, LLDPE, and a polypropylene plant) in Suhar Industrial area.
The steam cracker plant will process light ends produced in OQ’s plants in Suhar as well as rich gas received from the Fahud plant. The plant’s concept lies in rerouting high-value elements from existing production streams - in combination with additionally purchased feedstocks - to deliver high-value polymer products for the local and international markets. The project will also produce by-products that will be fed-back into the company’s Refineries and Aromatics Complex.