current projects in oman
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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
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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
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Current Government Gas Infrastructure
OXY MUKHAIZNA
24 TO SALALAH
SALALAH
AL KAMIL
32
20"
16"
MUSCAT
SOHAR PORT
GGP
SUR
SAIH NIHAYDA
GAS PLANT
O/QLNG
SAIH RAWL CENTRAL
PROCESSING PLANT
48"
28"
FAHUD
36"
Government Gas System
PDO pipeline
South Oman Gas Line
Power Plants
PDO demand
Other consumers
SALALAH POWER PLANT
SALALAH METHANOL
MIRBAT POWER PLANT
OMIFCO
Khauthar
Gas Plant
OXY
PTTEP
DOLPHIN
32"
Maktoom Rashid Al-Matani
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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.
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Existing Utilization of Gas
Natural
Gas
from
Pipeline
CONDENSATE
POWER PLANTS
LNG
INDUSTRIAL &
COMMERCIAL
OGC is only A Shipper
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A Case for a change : Better Gas Utilization and more emphasis on In
Country Value Projects
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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
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Key Economical Drivers for Growth and Expansion
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9
NGL Values Growing With Crude Oil
0
5
10
15
20
25
30
1990 1993 1996 1999 2002 2005 2008 2011
LNG Crude LPG Naphtha
Comparative Fuel Values $US per MMBTU
-
LPG Demand is ~275 MMTA and Growing
LPG Demand, Million Tonnes
North America
Asia
Europe
Latin America
Middle East
Other
0
50
100
150
200
250
300
2000 2003 2006 2009 2012
LPG MAJOR TRADE FLOWS
LPG Major Trade Flows - 2011
W Europe
N America
ME
S America
Africa
NE Asia
SE Asia
Indian
Subcontinent
3,000 KTPY
CIS
Asia is largest consumer (92 MMTA).
North America second (60 MMTA)
Middle East Petrochemical demand for LPG growing rapidly.
Middle East is largest exporter
~27 MMTA. primarily to Asia.
Middle East exports anticipated to
grow despite increases in
domestic demand.
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Naphtha Demand is ~6 MMB/D and Growing
LPG MAJOR TRADE FLOWS
LPG Major Trade Flows - 2011
W Europe
N America
ME
S America
Africa
NE Asia
SE Asia
Indian
Subcontinent
3,000 KTPY
CIS
Petrochemical naphtha used primarily in Asia and Europe owing to lack of gas and NGL feedstock.
Asia is largest consumer (3.9 MMB/D).
Asia is largest importer ~1.4 MMB/D.
Middle East is largest exporter ~740 MB/D.
North America
Asia
Europe
Latin America
Middle East
Other
0
1000
2000
3000
4000
5000
6000
7000
2000 2003 2006 2009 2012
Naphtha Demand, Thousand Barrels/Day
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Natural Gas Feedstock Consumers
LNG 5-6
GTL 3-4
Methanol 3-4
Fertilizer 1-2
Aluminum 1-2
Polyolefins 18-20
Product prices and high capital costs limit the maximum breakeven feedstock price.
Feedstock represents a very large outlet for gas.
Breakeven
Gas price
$/MMBTU
Production of Polyolefins represents high value added. (ethane)
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Global Chemicals and Plastics Trade
Trade growing at 5-6% per year
China largest importer
China production will increase,
but imports still growing.
Middle East is largest exporter
owing to low-cost feedstocks
Million Tonnes per Year
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Major Added value by using city gas for cooking in Muscat
The spread between Natural Gas and LPG prices is forecasted to further grow. Hence, the macro-economical 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 less strict. This will further increase the amount of released LPG by approximately 20%.
LPG substitution provides two financially relevant benefits
OGC has concluded the Concept phase and awaiting for FEED study commencement
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Salalah LPG Extraction Project
Part of Omans plan to extend the natural gas value chain
OGC is concluding the Concept phase The plant is planned to be on-stream 2018
SAIH RAWL CPP
PDO
ABU TUBUL
OOCEP
KHAZAN/ MAKARM
BP
Salalah Extraction
Project
PROPANE
BUTANE
NAPHTHA
RESIDUE GAS
RABAB/ HAREEL
MIRBATt
NIMR COMPRESSOR
STATIOIN
24/32 SGL
OCCIDENTAL PDO
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Further Value Enhancement NGL Extraction and Potential Steam Cracker
Integrate petrochemical plant into Sohar Refinery Complex.
Synergies enhance economics.
NGL Extraction
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OXY MUKHAIZNA
24 TO SALALAH
SALALAH
AL KAMIL
32
20"
16"
MUSCAT
SOHAR PORT
GGP
SUR
SAIH NIHAYDA
GAS PLANT
O/QLNG
SAIH RAWL CENTRAL
PROCESSING PLANT
48"
28"
FAHUD
36"
Government Gas System
PDO pipeline
South Oman Gas Line
Power Plants
PDO demand
Other consumers
OMIFCO
Future Power Plants
Future demand
Ad Duqm area
Khauthar
Gas Plant
Future supply
Block 62
BP
OOCEP
BLOCK 60
OXY
PTTEP
DOLPHIN
Rabab
32"
Yibal
khuf
LPG Extraction
LPG Extraction
NGL Extraction
City Gas
NGL Extraction
Further Integration of Government Gas System
Petrochemical industry
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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.
New interlink pipeline benefits
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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.
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Maktoom Rashid Al-Matani
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