The agreement was signed by H E Eng Salim bin Nasser al Aufi, Undersecretary in the Ministry of Oil and Gas and Eng Isam bin Saud al Zadjali, CEO of Oman Oil Company, owner of Oman Gas Company.
An agreement has also been signed with Oman Trading International Company to market the LPG while another was signed with Salalah Free Zone Company on the sub usufruct of about 20 hectares for the project at Salalah Free Zone. A lease agreement was signed with Salalah Port Services to allocate about eight hectares for the LPG export facilities at Port of Salalah.
About US$640mn worth credit facilities agreements were also signed with local, regional and international finance companies.
H E Eng Aufi said that the estimated cost of the project is about US$820mn and that it will produce about 300,000 tonnes of liquefied gas. He added that the project will create 140 job opportunities at the operation state. The annual income from the project is expected to be US$200mn.
He said that the 300,000 tonnes of liquefied gas that will be produced comprise about 50 per cent of the sultanate’s current production.
He added that Oman Trading International Company has the right to market or distribute the produce of Salalah LPG project. While about ten per cent will be utilised locally, 80-90 per cent will be exported through International Marketing Company. Eng Zadjali said that Salalah LPG is a strategic project of Oman Oil Company. He added that the project is expected to enhance the existing and future petrochemical industries projects in the sultanate. It will also contribute to setting up new ventures, generating job opportunities and meeting the LPG needs of Dhofar.
Sultan bin Hamad al Bartamani, acting GM, Oman Gas Company said that the company has arranged finance for the project. The financing of the project which is expected to be operational by early 2020, has been secured through eight local, regional and international banks namely Bank Muscat, SCB, Bank Sohar, Qatar National Bank, Société Générale S A, Ahlibank, AB Corp and Ahlibank Bahrain.
Source Link: www.muscatdaily.com