2012 will be the earliest commencement date of a new petrochemical plant to be built by Oman and Dow Chemicals. This indicates that the plant start up is three-four years behind initial planned date, resulting in project cost increases. Project cost escalation has hit global energy projects, causing delays and even cancellation of several projects.
When the plant was first announced in 2004, construction was scheduled to finish in 2008 or 2009. A review of the current environment in the industry provided Oman and Dow an insight to redesign the plant for better profit margins in the face of rising costs. However, a delay has been caused by a decision by the two partners to rescope the project - another 6-12 months will be required to redesign the plant and another 3-3.5 years to build it.