Expansion of Sohar refinery to meet feedstock supply commitments to petrochem complexes

21-Jul-10

Major expansion of Sohar refinery complex being embarked upon by Oman Refineries and Petrochemicals CompanyOman Refineries and Petrochemicals Company LLC (ORPCORPC) will help the refinery meet feedstock supply commitments to adjacent downstream petrochemical complexes. Several major processing units will be added to the refinery complex as part of the expansion and upgrade initiative. They include a crude distillation unit, isomerisation unit and hydro-cracking unit. The expansion will also lead to the optimisation of the refinery's configuration, leasing to maximising the output of refined products, feedstock, and other petroleum byproducts. Refinery's processing capacity will be augmented from the present 116,400 bpd day to 187,000 bpd, entailing a capacity increase of around 60% and provide Aromatics OmanAromatics Oman LLC (AOL) with all its requirements of naphtha feedstock at the desired specs. AOL's US$1.7 billion aromatics plant, located adjacent o the refinery. Currently less than 35% of its feedstock requirements of straight-run naphtha is being sourced by AOL from ORPCORPC, a shortfall that will be fully addressed when the upgrade is completed. The upgrade will also enable ORPCORPCto meet its supply commitments of propylene to Oman Polypropylene (OPP), and boost output of gasoline and diesel aimed at meeting current and future domestic demand. Significant volumes of bitumen, principally used for road-surfacing, will be produced as well.