Salalah (Oman): The new ammonia plant in Salalah constructed by OQ (formerly known as Oman Oil Co.) was launched with an investment of roughly $463 million infusing a production capacity of 1000 metric tonnes of liquid ammonia per day. This inauguration marks a significant milestone for the company and promises to bring efficient and reliable solutions to the industry through its unique production power. The plant is expected to facilitate increased productivity and enhance competitive advantages in the industry.

At the inauguration ceremony, Talal al Awfi addressed the attendees and spoke of the momentous occasion as a major achievement for OQ Group. “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.”

Talal al Awfi, CEO of OQ Group, revealed that the integration of the new ammonia plant with the existing 1 million tonnes per year capacity methanol plant will lead to rationalized costs and improved performance. He pointed out that global demand for ammonia products is constantly increasing which is resulting in higher returns making the project particularly feasible. He noted that these products would be exported to international markets upon completion of the plant.

“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 also mentioned.

Last month, OQ inked a deal with Kuwait Petroleum International and OQ to construct a petrochemicals hub at the Duqm economic zone.