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Duqm refinery’s commissioning is expected to start in 4th Q of 2021

Duqm Refinery, whose construction is advancing at the Special Economic Zone in Duqm on Oman’s southeast coast, is criticized for commissioning as soon as late next year or soon 2022, Argus Media, a leading news portal on global energy and commodity markets, declared on Friday, citing the Sultanate’s Minister of Energy and Minerals.

Dr. Mohammed bin Hamad al Rumhy was quoted in the interview as saying that the estimated USD $7billion greenfield refinery is expected to procedure it’s first crude previous to the end of 2021 or in early 2022 — well ahead of the timeline in the beginning presumed for the delivery of the strategically important national project.

When fully operational, the refinery an anchor project of the SEZ has the potential to catalyze a ripple of new investment in support services, the contribution of infrastructure, and an array of civilian amenities. Together with the construction of the extremely larger petrochemicals scheme presumed downstream of the refinery, the integrated plan is expected to make a substantial contribution to Oman’s long-term economic and GDP growth.

Duqm Refinery and Petrochemical Industries Company (DRPIC), a joint venture (JV) of OQ – the downright Omani government-owned integrated energy group, and Kuwait Petroleum International, is developing the refinery and petrochemicals complex with a combined investment estimated in more of USD $15 billion. The 230,000 barrels per day (BPD) capacity refinery will process several types of crudes into diesel, jet fuel, naphtha, and liquefied petroleum gas (LPG).

As of end-July 2020, construction work on the refinery was well past the 65 percent mark with an army of workers, employed through a crowd of contractors and subcontractors, currently deployed at the site. Also making progress in the construction of an Oil Berth at the Port of Duqm as well as the first phase of a world-scale Crude Oil Storage Park at Ras Markaz just south of the SEZ.

According to the Argus report, a storage capacity of approx 6 million barrels capacity is being developed at Ras Markaz to meet the needs of Duqm Refinery.
Feedstock for the refinery, including a mix of 65 percent Kuwaiti crude and 35 percent Omani crude, will be stored at Ras Markaz and piped to the refinery through an 80-km crude pipeline, also due to be commissioned approx mid-2021.

Construction work on the complex, currently the subject of a Front End Engineering Design by UK’s Wood Group, is expected to start by 2022, with the integrated plant set to be operational in 2026, the report added. Last week, DRPIC named 12 international licensors as winners of technology license packages for several units of the giant petrochemicals scheme.

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