Poor availability of gas in the region, pressure of inflation and lack of human resources are the key challenges being faced by the petrochemical industry in Oman. Oman forayed into the oil and gas sector very late, making the timing of it's entry in the oil and gas sector wrong. There is a need for the Sultanate's economy to diversify into other sectors and reduce its dependence on oil.
Inflation in the AGCC was unheard of a few years ago as the market was witnessing the opposite phenomenon, deflation. But now, the prices of things have doubled, even tripled - a gas plant that cost US$1 bln six years ago, costs over US$3 bln today. Non-availability of skilled labour and technical know-how is also creating hurdles in the path of this industry.
01-Jul-08 
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