OQ Group has launched a Front-End Engineering Design (FEED) tender for the Saih Nihayda Natural Gas Liquids (NGL) extraction plant. Once operational, the project will have a processing capacity of up to 48 million cu m per day, reported the Oman News Agency.

The project scope includes the construction of an NGL extraction plant and an advanced fractionation facility in Duqm region capable of separating ne million tonnes of gas components annually in its initial phase. 

It will also involve the development of storage and marine export facilities, refrigerated LPG tanks, and dedicated export lines directly linked to the liquid berth at the Port of Duqm, stated the report.

This represents a strategic step to reinforce the energy sector ecosystem and maximise the added value of natural gas in Oman, it stated.

Notably, OQ has signed a 20-year gas supply agreement with Integrated Gas Company to secure the required natural gas volumes for the facility. 

The long-term arrangement enhances feedstock reliability and supports multi-decade planning for Oman’s industrial expansion.

The move will strengthen the regional gas supply chain and support industrial diversification plans in the sultanate, said the ONA report.

The new facility will form part of a fully integrated NGL value chain linking upstream extraction in Saih Nihayda with processing, fractionation, storage and export infrastructure in the Special Economic Zone at Duqm, it stated. 

The development includes a dedicated 230-km, 16-inch pipeline and a downstream fractionation complex in Duqm designed to separate key gas components. 

Output will include ethane, propane, butane and C5+ condensates for use in petrochemical and manufacturing industries within Oman and across regional markets, it added.