OMAN LNG
Oman LNG (Liquefied Natural Gas) began in 1989 when large natural
gas reserves were discovered. These reserves, in excess of the nation’s
domestic requirements, represented a valuable new resource for the
country.
Natural gas customers are far from Oman and it was decided to liquefy
the gas so it could be transported in large quantities.
A Royal Decree issued by HM Sultan Qaboos in February 1994 led
to the establishment of a new company to market and export Oman
LNG.
The fastest LNG plant in the world
From the first discovery to the export of the first cargo the process
took just nine years and when the Oman LNG gas plant came on stream
in mid-1999 it held the world record for the fastest construction
time
The challenge of ensuring effective management of engineering,
procurement and construction work during the building of the LNG
plant went to Shell Global Solutions who acted as technical advisor
to Oman LNG for the two-stage plant, supervising all aspects of
the project.
The company utilised its experience in minimising project costs
to manage fully competitive bidding between engineering, procurement
and construction (EPC) contractors. During the preparation of the
project specification, EPC bidders were progressively provided with
design information so they had adequate time to prepare high-quality,
unified bids that gave no significant advantage to the project specification
contractor.
The location of the $US2.0 billion LNG plant at Qalhat, in the
Wilayat of Sur, was due to its close proximity to the sea and the
advantage of a deep natural harbour. The state-of-the-art facility
houses the world's two largest LNG trains, each with an annual capacity
of 3.3 mtpa.
The plant was inaugurated by His Majesty Sultan Qaboos on 14 October
, 2000.
Oman LNG marks a new phase in Oman’s economic development
and diversification of the national economy away from dependence
on oil revenues.
Oman LNG earned a net profit of $ 691.75 million in its first full
year of operation.
The plant consists of two 3.3 mtpa liquefaction trains each with
two gas turbines. One frame 6 driving the propane and a frame 7
driving the MCR compressors with a total capacity of about 1 00
mega watts (MW) per train. A seawater cooling water system with
five pumps (four normally in service) each with a capacity 13,000
cubic metres per hour.
A power plant consisting of four frame 6 gas turbine driven generators
with a total of capacity about 120 MW.
A new LNG train is expected to produce LNG for exports in 2006.
The third LNG train, with a capacity of 3.3 tpy would increase the
capacity of Oman LNG from the present 6.6 tpy to about 10 tpy.
This LNG train would be similar in character to the two existing
LNG trains with capacities of 3.3 tpy each.
Oman LNG’s operations are presently focused on a two-train
liquefaction plant at Qalhat, near Sur. A Spanish utility company
Union Fenosa has committed to buy nearly 50 per cent of the output
of the new LNG train. The balance would be marketed in Europe, the
Far East and America.
The Omani government has also purchased stakes in two state-of-the-art
NG ships to enhance the economic value of the LNG sector and generate
employment opportunities for Omanis.
The government of Oman holds 51 per cent of Oman LNG. The Royal
Dutch/Shell Group 30 per cent, TotalFinaElf 5.54 per cent, KOLNG
5 per cent, Partex 2 per cent, Mitsubishi 2.77 per cent, Mitsui
2.77 per cent and ltochu 0.92 per cent.
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