Name of client: OGC – Oman Gas Company
Budget: $650 million
Facility type: Liquefied Petroleum Gas (LPG)
Sector: Gas
Status: Engineering & Procurement
Location: Salalah
Feed: CB&I , Petrofac
PMC: Tecna SA
Main Contractor: Petrofac

Background
OGC is looking at a project designed to extract liquefied petroleum gas (LPG) from the Salalah gas pipeline network in southern Oman. The project will see the construction of LPG Extraction plant with the capacity of 7 to 10 mmscmd. In the first stage of LPG extraction, OGC will produce 700-800 tonnes of butane, propane and condensate per day from the gas system.

Project status
April 2017: Engineering works are under way by Petrofac.

Project scope
• Liquefied petroleum gas (LPG) unit with a capacity to produce 327,000 tonnes per annum
• Tie-ins to existing pipeline infrastructure
• LPG storage
• Jetty facilities at the Port of Salalah (ship loading facilities)
• Associated facilities, including

Project finance
Oman Gas Company is the client. OGC issues an expression of interest to banks to finance the project. Bank Muscat and Mitsubishi UFJ (MUFG) are the mandated lead arrangers for the syndicated loan.
International banks receive requests for proposals for a $750 million loan for the project. Oman Oil Facilities Development Company, a subsidiary of Oman Oil Company, is discussing partial financing for the project with several international banks and export credit agencies. The financial closure for 75 per cent will be completed during Q2-2017.

Project schedule
Feasibility study Q4-2011
Feed Q1-2016
EPC ITB Q2-2016
Engineering & Procurement Q1-2017
Construction Q3-2017
Completion Q1-2020