Liwa Plastics Industries Complex is a transformational project that will improve Orpic’s product mix and business model, double its profit and support the development of a downstream plastics industry in Oman. Taking advantage of the growing global market for plastics, it will create new business opportunities and employment in the Oman, and firmly reinforce Orpic as a significant player in the international petrochemicals marketplace. This project will bring new business development opportunities for the Sultanate in the fast growing plastics industry.
The project’s physical hub centres on the existing Orpic facility in the Suhar Industrial Port Area. Land within the zone has already been allocated to allow for LPIC and the 2016-scheduled Suhar Refinery Improvement Project. The Port Zone and the businesses within it have contributed to phenomenal growth in Suhar over the past 10 years, and LPIC will augment and encourage that trend.
The Project
LPIC is a steam cracker project which will process light ends produced in Orpic’s Suhar Refinery and its Aromatics plant as well as optimize Natural Gas Liquids (NGLs) extracted from currently available natural gas supplies. Its concept lies in rerouting elements of existing production in combination with additional purchased feedstocks to deliver high value polymer products for the local and international marketplaces. Its primary goal is to further increase the value-added that can be derived from Omani crude oil and natural gas. One of the first key milestones has already been passed with the Ministry of Oil and Gas’ agreement to the natural gas allocation for the project.
The project has six core components to it:
• A natural gas extraction plant in Fahud
• 300km pipeline between Fahud and Suhar Industrial Port Area for gas transportation
• An 800+kTA Steam Cracker Unit
• HDPE Plant
• LLDPE Plant
• Polypropylene Plant
It will enable Oman, for the first time, to produce polyethylene, the form of plastic that rates highest
in terms of global demand, thus enabling Orpic to deepen access in its existing international
markets as well as develop new ones.
LPIC’s Timeline
The project is on schedule for completion during 2019. The anticipated outline timeline is as follows:
• Feb 2014 FEED and Technology awarded
• Dec 2014 EPC Tendering
• April 2015 Award of EPC
• Q4 2017 Start of Commissioning
• Q2 2019 Operational
Anticipated production volumes
• 838 KTA of Polyethylene (LLDPE/HDPE)
• 215 KTA of Polypropylene
• 186 KTA Mogas
• 46 KTA Benzene
LPIC’s Positive Business Impact
After LPIC, plastics production will have increased by 1 million tonnes, giving Orpic a total of 1.4 million tonnes of polyethylene and polypropylene production by 2019. The company’s revenue will grow further following LPP, and its profits will double.
With the highly integrated complex in Suhar including the refinery, aromatics plant, steam cracker and the downstream polypropylene and polyethylene plants, the operation will be one of the best integrated refinery and petrochemical facility combinations in the world, and will be able to achieve the maximum value-added for Oman’s hydrocarbon molecule.
LPIC Employment Opportunities
In terms of numbers, the construction phase of LPIC will require up to 7,000 Full Time Equivalents (FTEs).
Once the project has been completed, it is anticipated that 350 operators will be required to manage the facilities, as well as 150 technicians. The indirect employment effect is expected to create more than 1,200 jobs in the local area.
Environmental Disclosure Reports
EIA Report
Environmental Management Plan (EMP)
Rapid Risk Assessment Report (RRA)
EIA Report
Environmental Management Plan (EMP)
EIA Report
Environmental Management Plan (EMP)