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SMC awards SNC-Lavalin contract for ammonia plant construction

Salalah Methanol Company (SMC), a wholly owned subsidiary of Oman Oil Company (OOC), has awarded SNC-Lavalin, a contract for the engineering, procurement and construction (EPC) of a 1,000 metric tonnes per day anhydrous liquid ammonia plant, including its utilities and off-site infrastructure, in Salalah Free Zone. This vital project is in line with the economic diversification of the Sultanate, and as part of the company’s growth strategy with the aim of contributing to value creation. Setting up the ammonia plant is considered an important milestone for high value-added petrochemical industries.

The project works will begin in March, SNC-Lavalin will be responsible for the engineering, procurement, construction and commissioning of the facility, which will produce anhydrous liquid ammonia. The completion of Refinancing by SMC is expected to occur in the second quarter of 2017, and the plant construction will be completed in three years. The ammonia plant would be utilising the methanol plant’s hydrogen rich by-product gas as feedstock. The plant was designed by Linde AG of Germany using Haldor Topsoe license of Denmark for ammonia synthesis production. The design complies with local environmental regulations. The project will also harness in-country value with strong focus on the development of local resources and engaging local supply chain.

This project paves the way for future opportunities in Oman for the development of downstream industries and thus, maximising the value addition. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers.

Ammonia is also a building block for the synthesis of many pharmaceutical products and is used in many commercial cleaning products.

Salalah Methanol Company owns and operates 3,000 metric tonnes of methanol per day, located at Salalah Free Zone. It is managed by Takamul Investment, which is one of Oman Oil Company’s verticals responsible for managing domestic existing assets.

OOC is wholly owned by the Government of Oman and investing in the energy and energy-related sectors both locally and internationally. It plays a pivotal role in the country’s efforts to diversify the economy and to promote Omani and foreign private sector investment.
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