September 04, 2022

OQ ammonia plant starts production and export of first Ammonia shipment

Press release
Chemicals Corporate

OQ, the global integrated energy group, announced the start of production of the Ammonia Project in Dhofar Governorate. The Project is one of the key strategic projects fully owned by OQ with an investment cost of USD $463 million. The Plant has a designed capacity of 1,000 metric tonnes per day (MTPD) of Ammonia. OQ Trading, the Group’s trading arm also announced the export of the first shipment of the liquid Ammonia from the Plant through Salalah Port.

Commenting on the announcement, Hilal Al Kharusi CEO of the Commercial and Downstream Unit at OQ said, " the Ammonia project comes within OQ’s efforts to enhance the added value of natural resources and support the Omani government's economic diversification plans. The Plant will export its products to targeted global markets, especially in Asia, further contributing to the enhancement of the Omani exports”.

"The start of production operations in the plant is a key milestone that enhances the contribution of OQ Group. The demand for ammonia products in the global markets is witnessing constant growth leading to higher returns. This situation renders the project highly feasible” he added.

“This plant is fully integrated with the existing 1 million tonnes per year capacity Methanol plant which will enable OQ Group to rationalize the cost and optimize performance and production efficiency. The new Ammonia plant has been designed to retain the hydrogen-rich purge gas generated by the methanol plant as feedstock for the Ammonia plant” Al Kharusi concluded.

Ammonia is used as a key ingredient in the production of fertilizers and is an important intermediate chemical in the manufacturing of synthetic resins, detergents, coolants, synthetic fibers, and polyurethanes, among other applications. Ammonia is also used in the production of green hydrogen which is a key component of OQ Energy Transition agenda.