Current Projects in Oman

Overview of current projects under
development in Oman & their link

with economic growth and the
In- Country Value
Maktoom Al-Matani
GM-Engineering & Technical Services
Oman Gas Company
Gas Arabia Summit -2012
His Majesty Sultan Qaboos Speech

Quotes from His Majesty Sultan Qaboos Speech to Omani
Citizens on the Opening of The Council of Oman
(Majlis Oman) on 11th of November 2012
Dear Citizens ..
The private sector is one of the basic pillars of development, both in the economic
concept, which represents commerce, industry, agriculture, tourism, finance and the
economy in general, as well as the social concept, which denotes human resources
development, training, the upgrading of scientific and practical skills, the offering of
new employment opportunities and incentives to take up jobs in the private sector
Current Government Gas Infrastructure

Government Gas System
PDO pipeline
South Oman Gas Line
Power Plants
SOHAR PORT
PDO demand
Other consumers
DOLPHIN
16"
PTTEP
32
MUSCAT
OXY
32"
36"
20"
O/QLNG
FAHUD
OMIFCO
AL KAMIL
GGP
48"
Khauthar
Gas Plant
28"
SAIH RAWL CENTRAL

PROCESSING PLANT
SAIH NIHAYDA
GAS PLANT
24 TO SALALAH
SALALAH
SALALAH POWER PLANT
SALALAH METHANOL
MIRBAT POWER PLANT
Maktoom Rashid Al-Matani
OXY MUKHAIZNA
SUR
Oman Natural Gas Overview
Oman Natural Gas Demand expected to exceed 100 MMstm3/d by 2021 excluding
Dqum.
Expected to remain a key fuel in power generation and industrial sector.
Government upfront strategic planning has ensured sustainable gas supply for years
to come.
Government Strategy to open-up new gas blocks to new national and international
Operators has enhanced Oman gas reserves.
With BP full development and other small fields on-stream Complex natural gas based
industry will be the Focus in the incoming years.
Investments on unconventional Gas is becoming a Must to meet the gas Demand.
Some Key Challenges in future such as gas quality will need to be managed and will
have impact on the operating cost of the gas processing facilities.
Existing Utilization of Gas
POWER PLANTS
Natural
Gas
OGC is only A Shipper
from
Pipeline
INDUSTRIAL &
COMMERCIAL
LNG
CONDENSATE
A Case for a change : Better Gas

Utilization and more emphasis on In
Country Value Projects
In Country Value is A Key Driver for \

diversification of Gas Sector
Promotion of In-Country Value in gas sector which is of
significant importance to the national economy of the
country and that it is a government priority.
Encourages development of In country downstream
industry
Further develop Oman private sector to build and

operate downstream industries
Building local human resources capabilities, job
creation, products and manufacturing
Large impact on human capital hence more ICVs
generated per volume of gas
Key Economical Drivers for Growth and

Expansion
NGL Values Growing With Crude

Oil
Comparative Fuel Values $US per MMBTU
30
25
LNG
Crude
LPG
Naphtha
20
15
10
5
0
1990
1993
1996
1999
2002
2005
2008
2011
9
LPG Demand is ~275 MMTA

and Growing
LPG Demand, Million Tonnes
300
Middle East is largest exporter

~27 MMTA. primarily to Asia.
250
Other
Middle East
200
Latin America
150
Europe
100
Middle East exports anticipated to

grow
despite
increases in
LPG Major
Trade
Flows
- 2011
LPG MAJOR TRADE FLOWS
domestic demand.
Asia
W Europe
N America
50
NE Asia
North America
Africa
0
2000
CIS
ME
Indian
Subcontinent
SE Asia
2003
2006
2009
2012
S America
Asia is largest consumer (92 MMTA).

North America second (60 MMTA)
Middle East Petrochemical demand for
LPG growing rapidly.
3,000 KTPY
Naphtha Demand is ~6 MMB/D

and Growing
Naphtha Demand, Thousand Barrels/Day
7000
Middle East
6000
Asia is largest importer ~1.4 MMB/D.
Latin America
Other
Middle East is largest exporter ~740 MB/D.
5000
Europe
LPG Major
Trade Flows - 2011
LPG MAJOR TRADE FLOWS
4000
3000
2000
W Europe
Asia
CIS
N America
NE Asia
1000
Africa
ME
Indian
Subcontinent
SE Asia
0
2000
North America
S America
2003
2006
2009
2012
Petrochemical naphtha used primarily in

Asia and Europe owing to lack of gas
and NGL feedstock.
Asia is largest consumer (3.9 MMB/D).
3,000 KTPY
Natural Gas Feedstock Consumers

Breakeven
Gas price
$/MMBTU
LNG
5-6
GTL
3-4
Methanol
3-4
Fertilizer
1-2
Aluminum
1-2
Polyolefins
18-20
(ethane)
Feedstock represents a very large outlet

for gas.
Product prices and high capital costs
limit the maximum breakeven feedstock
price.
Production of Polyolefins represents high

value added.
Global Chemicals and Plastics

Trade
Million Tonnes per Year
China largest importer

China production will increase,
but imports still growing.
Middle East is largest exporter
owing to low-cost feedstocks
Trade growing at 5-6% per year
Major Added value by using city

gas for cooking in Muscat
OGC has concluded the Concept phase and awaiting for FEED study
commencement
LPG substitution provides two financially relevant benefits
The spread between Natural Gas and LPG prices is
forecasted to further grow. Hence, the macroeconomical benefit of introducing a NG network is the
amount NG consumed
With the introduction of an NG network the

specifications for the LPG plants can become les
strict. This will further increase the amount of
released LPG by approximately 20%.
Salalah LPG Extraction

Project
OGC is concluding the Concept phase
The plant is planned to be on-stream 2018
RESIDUE GAS
ABU
TUBUL
PDO
OOCEP
SAIH RAWL
CPP
PDO
KHAZAN/
MAKARM
BP
OCCIDENTAL
MIRBATt
24/32
SGL
NIMR
COMPRESSOR
STATIOIN
RABAB/
HAREEL
Part of Omans plan to extend the

natural gas value chain
Salalah
Extraction
Project
PROPANE
BUTANE
NAPHTHA
Further Value Enhancement

NGL Extraction and Potential Steam Cracker
NGL
Extraction
Integrate petrochemical plant into Sohar Refinery Complex.

Synergies enhance economics.
Further Integration of Government Gas System

NGL
Extraction
Government Gas System

PDO pipeline
South Oman Gas Line
Power Plants
SOHAR PORT
PDO demand
Other consumers
DOLPHIN
City Gas
16"
PTTEP
32
Future demand
Future supply
MUSCAT
OXY
NGL
Extraction
32"
36"
20"
Future Power Plants

O/QLNG
SUR
Block 62
FAHUD
OMIFCO
AL KAMIL
GGP
48"
BP
Yibal
khuf
Khauthar
Gas Plant
28"
SAIH RAWL CENTRAL

PROCESSING PLANT
LPG
Extraction
SAIH NIHAYDA
GAS PLANT
OOCEP
BLOCK 60
24 TO SALALAH
LPG
Extraction
SALALAH
Rabab
Ad Duqm area
OXY MUKHAIZNA
Petrochemical industry
New interlink pipeline benefits

New interlink pipeline between North and South will have the following
benefits
Mitigate impurities in the gas such as Nitrogen and to meet customers requirement.
Can serve as a loop line to the existing interlink and maximize gas supply to North
grid in case of any trip major suppliers.
Connect BP and other suppliers into an integrated gas network system.
Provide operational flexibility and manage export gas quality such as Heating
values & capability to direct the gas based on demand requirements
It will be possible to control the overall gas integrated network from a central
control center.
Possibility of considering NGL Extraction Facilities in Fahud area which can be

sent to Sohar for upcoming industries.
OGC Leading midstream and downstream expansions

and ICV Initiatives
All the ongoing OGC development projects and initiatives focus on

maximizing benefits from the Gas Chain and on In Country Values Gains
OGC is working with MOG and other stakeholders in identifying areas as
growth nodes for spatial development initiatives
OGC and ORPIC started integrating upstream and Downstream Role
players aspirations to have further value addition of the gas.
With all these projects under development OGC puts itself in critical step
of midstream and downstream industries expansion in Oman and the region.
Maktoom Rashid Al-Matani

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Current Projects in Oman

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Overview of current projects under

development in Oman & their link

His Majesty Sultan Qaboos Speech

Current Government Gas Infrastructure

SAIH RAWL CENTRAL

Maktoom Rashid Al-Matani

Oman Natural Gas Overview

Expected to remain a key fuel in power generation and industrial sector.

Investments on unconventional Gas is becoming a Must to meet the gas Demand.

Existing Utilization of Gas

OGC is only A Shipper

A Case for a change : Better Gas

In Country Value is A Key Driver for \

Further develop Oman private sector to build and

Key Economical Drivers for Growth and

NGL Values Growing With Crude

LPG Demand is ~275 MMTA

Middle East is largest exporter

Middle East exports anticipated to

Asia is largest consumer (92 MMTA).

Naphtha Demand is ~6 MMB/D

Asia is largest importer ~1.4 MMB/D.

Middle East is largest exporter ~740 MB/D.

Petrochemical naphtha used primarily in

Natural Gas Feedstock Consumers

Feedstock represents a very large outlet

Production of Polyolefins represents high

Global Chemicals and Plastics

China largest importer

Trade growing at 5-6% per year

Major Added value by using city

With the introduction of an NG network the

Salalah LPG Extraction

Part of Omans plan to extend the

Further Value Enhancement

Integrate petrochemical plant into Sohar Refinery Complex.

Further Integration of Government Gas System

Government Gas System

Future Power Plants

SAIH RAWL CENTRAL

New interlink pipeline benefits

Possibility of considering NGL Extraction Facilities in Fahud area which can be

OGC Leading midstream and downstream expansions

All the ongoing OGC development projects and initiatives focus on

Maktoom Rashid Al-Matani

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