Oman Invites Bids for Gas Expansion Project

Oman has invited bids for a $150 million expansion of an upstream gas plant located in the center of the Gulf Arab state, a Petroleum Development Oman (PDO) official said on Wednesday. "We have invited specialized companies to expand our existing gas processing plant and bidders have up to the end of this month to hand over their bids," the official said in a statement. Oman is looking to expand its upstream gas plant to 60 million cubic meters per day from the current 40 million cubic meters per day. "Basically, the demand in the country is rapidly growing since Oman LNG will soon raise its production and we need to link our network to the Sohar and Salalah pipelines," he added. Oman LNG, which is producing from two trains, is seeking to build a third one to increase output capacity by 50 percent to 9.9 million tons per year. It is hoped that this project will attract more foreign investors.

Oman is building a gas pipeline to Sohar to develop gas-driven industries in the northern city, which is also the site of a planned methanol plant, an aluminium smelter and a 75,000 barrels per day oil refinery project. The Salalah pipeline in the south, which is expected to be completed in 2004, will supply gas to a planned free trade zone, an industrial estate and a private power station.