Oman News Agency reported that Mr Hilal bin Badr al Busaidi Wali of Sohar has laid the foundation stone for the new Gulf International Pipe Industry Llc plant in Sohar with USD US104 million investments and a capacity of 250,000 tonnes per annum.

Mr Abdullah bin Salim al Salmi board chairman of GIPI said that the facility will be the first of its kind in Oman to produce high pressure carbon steel pipes, 8 inches to 24 inches with 1 inch thickness.

He added that, after completion, the plant will produce more than 250,000 tonnes per annum of API standard pipes, which will reduce the reliance on imports and make the oil and gas sector in Oman self sufficient in carbon steel pipe. The project is also one of the downstream projects that enhance the government efforts to promote local industries.

Mr Hamdan al Shaqsi CEO of the new plant said that "The plant construction will be completed as per the pre set plans and is expected to start production in 2009 as the construction works will be completed before 2008 end."

The plant investment amounts to USD 104 million including USD 80 million as credit facility with a number of banks including Qatar National Bank, Gulf International bank, Bank Muscat and Bank Sohar. Gulf International Bank will be in charge of processing the loan contract.