OQ has announced the launch of its new ammonia plant in Dhofar governorate of Oman which has been built at an investment of about $463 million. The new facility will have a production capacity of 1,000 metric tonnes per day of liquid ammonia.

 

The plant was inaugurated by Governor of Dhofar Sayyid Marwan Turki Al Said in the presence of a number of senior officials.

 

Speaking at the opening, Sayyid Marwan said: "The new plant will contribute to supporting the economic activities in the energy sector, particularly for small and medium enterprises (SMEs) and provide direct and indirect employment opportunities for fresh and experienced Omanis."

 

In his speech at the inauguration ceremony, Talal al Awfi, CEO of OQ Group, said, “The ammonia plant is another economic asset that is being added to OQ’s investments in Dhofar governorate which houses three major projects of the group including a methanol plant and Salalah LPG plant, ammonia plant, as well as Raysut Petroleum Products Storage Terminal, which is the oldest facilities of OQ Group in Dhofar.”

 

Awfi said that the new ammonia plant is integrated with the existing 1 million tonnes per year capacity methanol plant, which will enable OQ Group to rationalise cost and optimise performance and production efficiency.

 

He noted that the plant will export its products to the international markets, adding that the demand for ammonia products in the global markets is seeing constant growth leading to higher returns and rendering the project highly feasible.

 

“The economic significance of the ammonia plant is paramount in light of its integration with other OQ projects. Ammonia is used in the production of green hydrogen, which is a key component of the OQ Energy Transition Agenda,” Awfi added.