Oman commences ammonia exports from Salalah Port

MUSCAT, SEPT 4

OQ, the global integrated energy group of the Sultanate of Oman, celebrated on Sunday the maiden shipment of a cargo of ammonia produced by its newly operational plant located in Salalah Free Zone in Dhofar Governorate.

The ammonia project, set up with an investment of $463 million, is integrated with an existing 1 million tonnes per year (TPY) capacity methanol plant, hydrogen-rich purge gas from which serves as feedstock for the production of ammonia. The new ammonia project has a capacity to produce 1,000 metric tonnes per day (MTPD) of anhydrous liquid ammonia.

OQ Trading – the trading division of OQ – also announced the shipment of the first ammonia cargo from the new plant. The product was loaded onto the Indonesia-flagged tanker ‘Gas Walio’ at Salalah Port.

OQ officials hailed the successful launch of the ammonia plant, as well as the export of the maiden cargo, as further evidence of the Group’s efforts to optimise value creation from the country’s hydrocarbon resources.

In a statement to ONA, Hilal bin Ali al Kharousi, CEO of the Commercial and Downstream Unit at OQ said, “The ammonia project comes within OQ’s efforts to enhance the added value of natural resources and support the Omani government’s economic diversification plans. The plant will export its products to targeted global markets, especially in Asia, further contributing to the enhancement of the Omani exports.”

“The start of production operations in the plant is a key milestone that enhances the contribution of OQ Group. The demand for ammonia products in the global markets is witnessing constant growth leading to higher returns. This situation renders the project highly feasible,” he added.

Covering an area of around 12 hectares in the free zone adjoining Salalah Port, the ammonia plant includes facilities for the production, storage and export and export of ammonia. The plant enhances the sustainability, profitability and diversification of OQ’s product portfolio. The project expected to pave the way for future opportunities to develop the processing industries.

Ammonia is widely used as a fertiliser. Ammonium nitrate and other ammonium salts are excellent fertilisers and help increase crop yield because they have a high nitrogen content. Besides, ammonia can be oxidised to produce nitric acid, which is used in many important industries.

Ammonia is also an essential ingredient in the manufacture of many chemicals, plastics, vitamins and drugs. For example, ammonia plays the role of a catalyst in the manufacture of plastic materials such as synthetic resin and melamine resin.

OQ’s energy transition strategy also envisions the use of ammonia as an alternative to planet-warming hydrocarbons. In May this year, OQ singed a joint development agreement (JDA) along with American industrial gases firm Air Products and Saudi-based energy company ACWA Power to set up a world-class green hydrogen-based ammonia production facility in Salalah Free Zone. The proposed multibillion-dollar ammonia project will be powered by renewable energy in the Sultanate of Oman.