Oman launches tender for hydrocarbon extraction plant

Oman’s state-owned OQ is seeking companies to build a natural gas liquids (NGL) extraction plant to support the country’s industrial diversification plans.

The energy group has launched a front-end engineering design tender for the Saih Nihayda Natural Gas Liquids extraction plant, which will have a processing capacity of up to 48 million cubic metres per day, Oman News Agency said.

The project scope includes the construction of an NGL extraction plant and an advanced fractionation facility in Duqm, capable of separating approximately 1 million tonnes of gas components annually in its initial phase. 

It will also involve building storage and marine export facilities, refrigerated LPG tanks and dedicated export lines directly linked to the liquid berth at the Port of Duqm.

The cost of the extraction plant was not disclosed.

The facility will form part of a fully integrated NGL value chain linking upstream extraction in Saih Nihayda with processing, fractionation, storage and export infrastructure in the Special Economic Zone at Duqm, according to the report. The plant will include a 230km, 16-inch pipeline and a downstream fractionation complex in Duqm.

Ethane extracted from the site is expected to serve as a feedstock for the planned Oman Petrochemicals Complex in Duqm.

Further reading:

• Oman’s OQ seeks partners for Duqm petchems project
• Oman picks consortia for two power generation projects
• Investcorp to spend $550m to expand Oman’s Duqm port

OQ signed a 20-year gas supply agreement in November 2025 with the state-owned Integrated Gas Company to secure the required natural gas volumes for the facility. 

In August 2025 OQ said BP was increasing gas production capacity in Oman’s Block 61 in Khazzan and Ghazeer to supply Oman LNG’s fourth liquefied natural gas processing unit in the eastern region of the country.

Known as a “train” in the industry, the facility will process natural gas into liquefied natural gas.