Oman started exporting the first shipment of ammonia, allowing the Gulf state to be part of the global ammonia market.
On Sunday, the Global Integrated Energy Group (OQ) announced the start of production at the ammonia plant in the Dhofar Governorate, with a production capacity of 1,000 metric tons per day of liquid ammonia.
The ammonia plant is one of the strategic growth projects wholly owned by the OQ Group with an investment of $463 million.
Hilal al Kharusi, CEO of commercial and downstream unit at OQ, said: “The ammonia project comes within OQ’s efforts to enhance the added value of natural resources and support the Omani government’s economic diversification plans. The plant will export its products to targeted global markets, especially in Asia, further contributing to the enhancement of the Omani exports.”
“The start of production operations at the plant is a key milestone that enhances the contribution of OQ Group. The demand for ammonia products in the global markets is witnessing constant growth leading to higher returns. This situation renders the project highly feasible,” he added.
The new ammonia plant has been designed to retain the hydrogen-rich purge gas generated by OQ’s methanol plant as feedstock for the ammonia plant.
Ammonia is used as a key ingredient in the production of fertilizers and is an important intermediate chemical in the manufacturing of synthetic resins, detergents, coolants, synthetic fibers, and polyurethanes, among other applications.
Ammonia is also used in the production of green hydrogen which is a key component of OQ’s energy transition agenda.