Oman’s Sohar Asphalt LLC awarded the Engineering, Procurement and construction (EPC) contract for bitumen refinery to be located at Sohar Industrial Port. The project is to be considered as, first of its kind in Oman.
The project has been awarded to China based Oil & Gas firm, Hualu Engineering Technology Company Limited.
The value of signed contract is $408 million.
Sohar Asphalt LLC was established in 2015 to set up a 30,000 barrels per stream day (BPSD) capacity bitumen refinery designed to process heavy crude into bitumen as the main product, as well as atmospheric and vacuum distillates as byproducts.
Annual production is estimated at one million tons of bitumen and 600,000 tonnes of naphtha, straight-run distillates and vacuum gas oil (VGO).
Project’s commercial operation will be in 2023. Once the project is in fully operational, it can fullffil the Oman’s longstanding dependence on bitumen imports for road paving and related applications.
A 27-hectare site has already been allocated for the project adjoining the Sohar Refinery of OQ , the Sultanate’s integrated energy company at Sohar Port.
Heavy crude as raw material for the bitumen refinery will be sourced from a number of international producers, including from Central and South American producers.
The feedstock will be shipped by crude carriers to the Port of Sohar and stored at the Liquid Terminal operated by Oiltanking Odfjell Tank Terminal (OOTT) at the port. Dedicated storage facilities will also be constructed at the site of the bitumen refinery.
The project’s output of straight-run bitumen, which is primarily used in road paving, will be exported to a number of markets in the Gulf and the Indian-continent. The Omani market is expected to be an important consumer as well.
Spanish firm, Tecnicas Reunidas engineering had engaged to develop basic engineering and FEED for the entire project.
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