Al Baleed Petrochemical Secures Gas Supply for Salalah Petrochemicals Park
Al Baleed Petrochemical has signed a Natural Gas Sales Agreement (NGSA) with Oman's Integrated Gas Company to secure gas supply for its upcoming petrochemicals park in Salalah Free Zone. The project, backed by private Omani interests, will use local methanol, ammonia, and LPG to produce high-demand chemicals, including the country's first Propane Dehydrogenation (PDH) plant and a maleic anhydride unit. The initiative aims to reduce Oman's reliance on chemical imports and boost exports, supporting the national Vision 2040 for energy security and industrial growth.
Al Baleed Petrochemical, supported by private Omani investors, has taken a significant step forward in the development of a major petrochemicals park in Salalah Free Zone by signing a Natural Gas Sales Agreement (NGSA) with the Integrated Gas Company, the sole gas aggregator in Oman. This agreement ensures a sustainable and reliable supply of natural gas—both as fuel and feedstock—for the industrial complex. The petrochemicals park is designed as an integrated hub, leveraging Oman’s abundant methanol, ammonia, and LPG resources to produce a range of high-demand chemical products. The project will feature several key units, including Oman’s first Propane Dehydrogenation (PDH) plant, which will use locally sourced LPG, and a maleic anhydride plant with a 50,000-tonne annual capacity, supported by Italian technology licensor Conser (part of MAIRE group). Phase 1 of the park will also include production units for formic acid, acetic acid, and hydrogen peroxide. The project aims to reduce Oman’s dependence on imported industrial chemicals while creating export opportunities for value-added petrochemicals. Al Baleed Petrochemical is also in discussions with OQ Base Industries for long-term supply of critical feedstocks from its Salalah complex. The initiative aligns with Oman Vision 2040, focusing on energy security, industrial diversification, and sustainable economic development. Earlier milestones include engaging Japan’s Morimatsu for engineering design and commissioning Lummus USA for the PDH plant’s FEED study.
