US$2.5 bln investments planned in 4 new hydrocarbon and petrochemical projects in Sohar

28-Jun-19

Four new hydrocarbon and petrochemical projects at an approximate investment of US$2.5 bln are due to come up on a new parcel of land to be reclaimed from the sea as part of the ambitious Sohar South expansion project of Sohar Port and Freezone (SOHAR). Oman Observer reported that a tender for the reclamation of the land, designed to add around 250 hectares to SOHARs hugely successful Petrochemicals Cluster, is due to floated shortly, according to a top official of the industrial port.

The Sohar South expansion is progressing very well, said Mark Geilenkirchen, Chief Executive Officer. We have so far attracted four investors to this development, which falls within our Petrochemical Cluster. The expansion of the Petrochemical Cluster has become necessary because the port has virtually run out of leasable real estate for new petrochemical investors. The cluster is already home to petrochemical projects worth in excess of US$10 billion the majority of them set up by wholly government owned Oman Oil and Orpic Group.

A two-year timeframe is envisioned for the completion of dredging and reclamation, which will be followed by a roughly three-year window for the implementation of the projects, according to the CEO. Within the next five years, you will see the land occupied and the projects operational, he said.