Oman’s global integrated energy group OQ (formerly known as Oman Oil Co.) on Jan. 15 officially inaugurated its new ammonia plant at Salalah in the country’s Dhofar governorate, Muscat Daily has reported.
Built at a cost of some $463 million, the plant has a production capacity of 1,000 mt/d of liquid ammonia and represents one of OQ’s main growth projects, according to the group.
The ammonia plant started production in late August/early September, according to a Sept. 4 media statement by OQ, and made its first shipment of liquid ammonia through Salalah port, according to an announcement at the time by OQ Trading Ltd., OQ Group’s trading arm.
The new production facility is fully integrated with an existing 1 million mt/y capacity methanol plant, enabling cost rationalizations and performance and production efficiency optimization, OQ said. The ammonia plant was designed to retain the hydrogen-rich purge gas generated by the methanol plant as feedstock for ammonia production, the company added.
OQ, which is a subsidiary of the Oman Investment Authority, said the economic significance of the ammonia plant is “paramount” in light of its integration with other of the group’s projects.
“The ammonia is used in the production of green hydrogen, which is a key component of the OQ Energy Transition Agenda, the Muscat Daily report quoted OQ Group CEO Talal Al Awfi as saying.
A green ammonia production project already is under development in Oman’s Duqm Special Economic Zone, which once fully developed, is targeted to produce up to 1.2 million mt/y of green ammonia.
The Green Hydrogen and Chemicals Co. (GHC), a joint venture between the UK unit of India’s ACME Group, and Norway-based Scatec ASA, started basic construction of the plant in December, according to a report in the Oman Observer (GM Dec. 16, 2022).
The initial phase of the development is expected to produce 100,000 mt/y (GM March 11, 2022) and Yara International ASA already has signed on for the offtake of the phase one output (GM July 15, 2022).