Oman's methanol output to double in April as Salalah Methanol commences operations

25-Feb-10
Salalah Methanol is preparing to launch commercial operations in April this year, a move that is set to double Oman's methanol output and reinforce the country's credentials as an emerging petrochemicals heavyweight. Salalah MethanolSalalah Methanol is 90% owned by Oman Oil Company (Omani government owned company) and 10% owned by Oman Energy Trading Company (a subsidiary of Oman Oil). Natural gas as feedstock for the plant will be supplied via an existing gas pipeline from Saih Rawl. The project has been set up with an investment outlay of US$900 mln and is located in the Salalah Free ZoneSalalah Free Zone. It has capacity to produce 3,000 metric tons per day, that can be ramped by 15%. Onsite support utilities have now been fully operationalised in preparation for the project's commercial launch slated for April 3. Oman’s first methanol project, the 3,000 metric tons per day plant of Oman Methanol Company in the Port of Sohar, commenced operations in October 2007. Potential export markets include northeast and southeast Asia, Europe and the United States, while priority will be given to local consumers, Al Shanfari said.
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