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December 03, 2008


OGC to expand South Oman gas transportation system

Oman Gas Company SAOC has unveiled plans for a major expansion of its gas transportation network in the south of the country, designed to serve a number of new customers in Dhofar Governorate.

Mr Yousuf al Ojaili CEO of Oman Gas Company said that the new South Oman Gas Transportation System will provide natural gas as feedstock and fuel to upcoming projects in Salalah. He added that "It involves the expansion of the Southern gas network to supply gas to Salalah Methanol and the new Salalah Power & Desalination project. This initiative translates the commitments made by the Government to support the development of industries across Oman and also to continue to provide the needs of power and desalination infrastructure in the different parts of the nation."

OGC's upgraded network will also be used to supply natural gas to a new independent power & water project, which will be built at Taqah near Salalah. Oman Power & Water Procurement Company is overseeing the development of the new IWPP of a capacity of 370 MW to 430 MW and 68,000 cubic meters per day of desalination capacity. The plant is due to be fully operational by early 2011, although some early power is expected to be available from 2010.

According to Mr Al Ojaili, a contract for the execution of the South Oman Gas Transportation System will be awarded by the third quarter of 2008. The project is due to be completed by 2009, well before the scheduled start ups of the methanol and IWPP ventures. A number of local and international companies are lining up to bid for OGC's contract to implement the South Oman gas transportation system on an engineering procurement construction basis. The South Oman Gas Transportation System is one of several initiatives currently being pursued by OGC in line with its goal to meet the expanding feedstock and fuel needs of customers around the country.

Mr Al Ojaili said that "We are in the final stages of installation of gas compression plants in Al Buraimi and Fahud to increase the capacity of the gas transmission system. Also, we have started construction work to add a second pipeline parallel to the existing Salalah pipeline to increase the capacity to consumers along the pipeline. We are also providing the third phase gas supply to some Sohar customers."

Significantly, OGC is gearing to facilitate the imminent import of gas into Oman for the first time in the country's history. Qatari gas supplied by Dolphin Energy Limited will begin to flow into the Sultanate effective from later in 2008.

OGC's gas transportation infrastructure has been growing at a rapid pace in step with the growing demand for natural gas around the country. It currently owns and operates more than 2,000 kilometers of pipelines and 23 gas supply stations, serving power plants, industries, and other consumers around the country. In 2006, OGC delivered 7 billion cubic meters of natural gas to customers.