Oman reports progress in its liquefied natural gas export project based on gas reserves under development in the central region.
LNG production is to start in first quarter 2000 from a plant at Qalhat, 125 miles southeast of Muscat and just south of Sur (see map, this page). The liquefaction plant site earlier had been reported as Al Ghalilah, north of Sur (OGJ, Feb. 24, 1997, p. 62).
Project details
The liquefaction plant will have dry gas inlet capacity of 34 million standard cu m/day and LNG capacity of 6.6 million metric tons/year rundown into storage from two trains of equal size. Two storage units at the site each will have capacity of 120,000 cu m.
The liquefaction plant will use a propane-precooled, mixed-refrigerant process.
Gas will come from 60-70 wells in Saih Rawl, Saih Nihayda, and Barik fields, gathered at Barik. First phase development involves 31 wells.
Energy content of the gas is 1,100-1,145 BTU/scf. The gas is 82-86.5% methane, 6-7.7% ethane, 2.2-3.3% propane, and 1.2-1.85% butane. It contains maximum levels of 0.76% pentanes and heavier, 5 ppm hydrogen sulfide, 1.2% carbon dioxide, 3.4% nitrogen, and 0.05% helium.
A new gas processing complex at Saih Rawl will use low temperature separation to extract as much as 25,000 cu m/day of condensate and 110 metric tons/day of liquid petroleum gas fractionated on site. Dry gas outlet capacity will be 40 million cu m/day.
A new 45-km, 16-in. pipeline will carry liquids to a connection with Oman's main oil pipeline at Qarn Alam.
Dry gas from Saih Rawl will flow through a 356-km, 48-in. pipeline to the liquefaction plant. The pipeline follows a northward route around the environmentally sensitive Wahiba Sands. Most of the line will be buried in a flat sand gravel plain.
The line will have no compression stations at first, although plans include a provision for future installation of a station at the pipeline's midpoint.
Oman's Ministry of Petroleum & Minerals estimates cost of the project at $4 billion, divided equally between the upstream and downstream parts.
Participants
Oman LNG LLC, a joint venture of the government (51%) and private shareholders led by Royal Dutch/Shell Group with a 30% share, is building and will operate the liquefaction plant, raise financing, and handle transportation and sale of LNG. Downstream financing is to be 80% commercial bank loans and 20% equity.
The downstream construction contractor group includes Chiyoda-Foster Wheeler Co. LCC, Suhail Bahwan Establishment, and Zubair Enterprises. The group holds a $1 billion engineering, procurement, and construction contract.
Petroleum Development Oman, owned 60% by the government and including a 34% interest of Shell, will build and operate the upstream production facilities on behalf of the government. PDO's private shareholders are financing the upstream investment.
A joint venture of Snamprogetti, Bechtel, and local contractor Galfar hold the engineering, procurement, and construction contract for upstream facilities.
South Korea Gas Corp. has signed a 25 year fob contract to buy 2 million tons of LNG in 2000 and 4.1 million tons/year from 2001 on. Oman LNG has been negotiating a cif contract with Petroleum Authority of Thailand for 2 million tons/year beginning in 2003 (see related story, this page).
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
