Indian Oil Corporation Ltd (IOC) is considering an investment of over US$5 bln in Oman. With the amount, India's state-run petroleum major will to either set up a gas-based petrochemical complex in Oman or to form a JV with a local company for an existing petrochem complex. IOC would proceed with the investment only upon completion of preliminary studies within a year. The news is yet to be confirmed by the company.
Setting up a petrochem plant in the Gulf countries, with 40% of proven global gas reserves and abundant ethane supply at a subsidized rate, is a viable option. Contract pricing for ethane supplies is the same regardless of whether the project is domestically or internationally owned.