OQ Group has issued a front-end engineering design (FEED) tender for its Saih Nihayda natural gas liquids (NGL) extraction facility, which will be capable of processing up to 48 million cubic metres of natural gas per day.
The new plant is set to link upstream extraction at Saih Nihayda with downstream infrastructure in the Special Economic Zone at Duqm (SEZAD), including a 230km² pipeline and a fractionation complex in Duqm.
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The facility will produce butane, propane, ethane and C5+ condensates intended for petrochemical and manufacturing industries in Oman and regional markets, reported the Omani News Agency.
OQ has confirmed that all output from the plant will form part of a fully integrated value chain, supporting both storage and export via dedicated lines to the Port of Duqm.
Ethane produced at the site is expected to supply the planned Oman Petrochemicals Complex in Duqm.
The project is entirely owned by OQ and is designed to build on government economic diversification efforts by maximising the value extracted from Oman’s natural gas resources.
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By GlobalDataAccording to OQ, initiating the FEED tender for this project demonstrates its backing for the government’s economic diversification strategies and its focus on increasing the value of Oman’s natural resources by further developing the role of natural gas.
Project development involves constructing NGL extraction facilities at Saih Nihayda and a fractionation plant in Duqm capable of separating around one million tonnes per annum (mtpa) of gas components during its initial phase.
The infrastructure scope also covers marine export facilities, liquefied petroleum gas storage tanks and dedicated export pipelines connected directly to SEZAD’s liquid berth.
To secure feedstock, OQ has signed a 20-year gas supply agreement with the Integrated Gas Company, ensuring long-term access to natural gas volumes required for operations. This agreement will support planning for Oman’s industrial sector over multiple decades.
The new facility underscores OQ’s intention to progress major projects that contribute to investment attraction and strategic partnerships supporting economic growth. The project aligns with efforts to strengthen Oman’s industrial base and reinforce SEZAD’s role as an investment hub.
