OQ Group has launched a Front-End Engineering Design (FEED) tender for the Saih Nihayda Natural Gas Liquids (NGL) extraction plant.

The project will have a processing capacity of up to 48 million cubic metres per day and represents a strategic step to reinforce the energy sector ecosystem and maximise the added value of natural gas in Oman, reported ONA.

The move will strengthen the regional gas supply chain and support industrial diversification plans in Oman.

The new facility will form part of a fully integrated NGL value chain linking upstream extraction in Saih Nihayda with processing, fractionation, storage and export infrastructure in the Special Economic Zone at Duqm (SEZAD).

The development includes a dedicated 230-kilometre, 16-inch pipeline and a downstream fractionation complex in Duqm designed to separate key gas components.

Output will include ethane, propane, butane and C5+ condensates for use in petrochemical and manufacturing industries within Oman and across regional markets.

Ethane extracted from the facility is expected to serve as a key feedstock for the planned Oman Petrochemicals Complex in Duqm, positioning the project as a critical enabler within the country’s evolving industrial platform.

Launching the FEED tender for this strategic project reflects OQ’s commitment to supporting the government’s economic diversification policies and its continued focus on maximising the value of Oman’s natural resources by enhancing the added value of natural gas.

This reinforces the position of the Special Economic Zone at Duqm as a global destination for high-quality industrial investments.

The project is wholly owned by OQ, underscoring its firm commitment to advancing the petrochemicals sector in Oman.

It further demonstrates progress in delivering major projects that attract investments and strategic partnerships in support of sustainable economic growth, while serving as a key feedstock source for the Oman Petrochemicals Complex planned in Duqm.

The project scope includes the construction of an NGL extraction plant in Saih Nihayda and an advanced fractionation facility in Duqm capable of separating approximately one million tonnes of gas components annually in its initial phase.

It will also involve the development of storage and marine export facilities, refrigerated LPG tanks, and dedicated export lines directly linked to the liquid berth at the Port of Duqm.

Notably, OQ has signed a 20-year gas supply agreement with Integrated Gas Company to secure the required natural gas volumes for the facility.

The long-term arrangement enhances feedstock reliability and supports multi-decade planning for Oman’s industrial expansion.