Page 11 - DMEA Week 37 2021

DMEA PETROCHEMICALS DMEA

Iran to connect more complexes

to ethylene transfer pipeline

MIDDLE EAST IRAN is to connect eight more petrochemical year and create some 2,000 permanent jobs in
complexes to the 2,800-kilometre West Eth- petrochemicals.
ylene Pipeline—the longest ethylene transfer The West Ethylene Pipeline runs from the
pipeline in the world—as it attempts to expand energy hub of Assaluyeh on the Persian Gulf to
petrochemical production and create more jobs petrochemical plants in Iran’s West Azerbaijan
in the sector. province bordering Turkey.
Iran’s National Petrochemical Company The NPC on September 12 also announced
(NPC) was cited by local press on September the awarding of a contract for the operation and
12 as announcing that the supply of ethylene, maintenance of the pipeline to OICO, a subsidi-
a petrochemical feedstock, to the pipeline is to ary of the Iranian Oil Ministry.
be increased by two thirds to 3.5mn tonnes per NPC restored its ownership of the pipeline
annum by 2025. two years ago. Prior to that, for seven years,
Deputy oil minister Behzad Mohammadi the facility was controlled by private sector
was reported by PRESSTV as saying that beef- operators.
ing up the capacity of the pipeline would provide The pipeline presently supplies and receives
feedstock for petrochemical complexes located ethylene from 13 petrochemical complexes
in western Iran. He added that the capacity along its route.
expansion would raise the value of products Oil Ministry data show it has supplied around
manufactured in plants connected to the pipe- 11mn tonnes of ethylene to petrochemical plants
line to $3.7bn per year from around $2bn per since it came online in 2012.™

PIPELINES

OQ awards pipeline deal to Galfar

MIDDLE EAST OMAN’S state-owned OQ this week awarded a industrial facilities mainly located in around
$104mn contract to local firm Galfar Engineer- Sohar, Muscat, Sur, Mukhaizna and Salalah
ing & Construction for the construction of a gas including refineries, petrochemical plants,
pipeline in the Sultanate. power plants, desalination plants, fertiliser
In a disclosure to the Muscat Stock Exchange, plants, cement plants and manufacturing
Galfar CEO Dr Hamoud al Tobi said: “We are facilities.
pleased to inform our esteemed shareholders The gas agreements for both blocks include a
that Galfar signed a contract with OQ Group for fixed escalating price for supplies.
an engineering, procurement and construction The reference price for Block 60 commenced
(EPC) project for Central 48” Rich and Lean Gas in 2011 at $2.50-2.80 per million Btu escalating
Pipeline Segregation Project at the OQ Group’s at 2% per annum while that for Block 61 started
concession area.” in 2014 at $3.30 per mmBtu and escalates at the
According to its prospectus for a $2bn same rate.
medium term note, OQ has participating inter- Galfar won a $28mn deal from another
ests in four producing blocks, one non-pro- OQ subsidiary, OQ Exploration & Production
ducing block and five exploration blocks both (OQEP), for the construction of pipelines across
onshore and offshore Oman. the firm’s upstream concessions.™
Tobi said that the contract would be carried
out over a period of 42 months, adding that the
deal would “contribute to the company’s reve-
nues and further strengthen our presence in oil
and gas and high-capacity pipeline projects”.
OQ subsidiary OQ Gas Network (OQGN) is
the exclusive operator and owner of Oman’s gas
transportation system and has the exclusive con-
cession to own and operate a system of pipelines,
metering, compressor and gas supply stations.
Production is sourced from Blocks 60 and 61
and sold to 59 connected government-owned

Week 37 16•September•2021 www. NEWSBASE .com P11