Oman-based OQ Group is set to open its new liquefied petroleum gas (LPG) plant, built at a cost of $824 million in Salalah on January 16.

The global integrated energy company said the “vital project, which has been designed and built to the highest technical and safety standards”, works on processing natural gas liquids (NGLs) extracted from gas networks into LPG.

According to the reports in the Omani media, the 318 million Omani Riyal (OR) ($824m) plant boasts several components, notably a facility for the extraction of rich gas elements such as propane, butane and condensates from natural gas, as well as a fractionation plant, storage tanks, shipping facilities, and an interconnection pipeline system.

OQ LPG can process around 8 million standard cubic metres per day of lean gas to produce about 304 kilotons per year of LPG comprising 155 kilotons per year of propane (C3), 111 kilotons of butane (C4) and 38 kilotons of condensates (C5+).

During the construction phase, the project made an important contribution to the local economy, said the report. In line with its In-Country Value (ICV) development strategy, the Omani group awarded contracts worth around OR 100m to local vendors and service providers, thus benefiting more than 150 small and medium enterprises.