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OQ strengthens Oman’s petrochemical ambitions with new extraction plant

by News editor
February 26, 2026
in Business
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OQ strengthens Oman’s petrochemical ambitions with new extraction plant
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Muscat: The planned facility will have a processing capacity of up to 48 million cubic meters of natural gas per day. The project forms part of a broader integrated system that connects upstream extraction in Saih Nahida with downstream processing and export operations in the Duqm Special Economic Zone.

At the heart of the development is a dedicated 230-kilometre pipeline that will transport extracted gas liquids from Saih Nahida to Duqm. There, the products will undergo advanced fractionation, processing, storage, and export through specialized marine facilities. The integrated value chain will extend from extraction to processing and ultimately to global markets via the Port of Duqm.

In its first phase, the Duqm fractionation plant is expected to separate approximately one million tonnes per year of gas components. The project will enable the production and export of high-value products, including ethane, propane, butane, and C5+ condensates. These components will serve as key feedstock for petrochemical and downstream industries within Oman and abroad, strengthening the Sultanate’s participation in regional petrochemical supply chains.

The scope of works includes the construction of an extraction plant in Saih Nahida, an advanced fractionation facility in Duqm, refrigerated storage tanks for liquefied petroleum gas, marine storage and shipping facilities, and dedicated export lines connecting directly to the liquid terminal at the Port of Duqm.

Fully owned by OQ Group, the project underscores the company’s commitment to advancing Oman’s petrochemical sector and aligning with the government’s economic diversification agenda. By adding greater value to natural gas resources, the initiative is expected to enhance the strategic positioning of the Duqm Special Economic Zone as a global hub for quality industrial investments.

The project will also serve as a key supplier of raw materials for the planned Oman Petrochemical Industries Complex in Duqm, further reinforcing the industrial integration of the zone.

To ensure long-term supply reliability, OQ Group has signed a 20-year gas supply agreement with Integrated Gas Company. The agreement secures the required natural gas volumes for the project, supporting sustainable infrastructure planning and operational stability.



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