EPC contract for Liwa Plastics project on target

March 2015

Front-end engineering design (Feed) of Oman’s state-of-the-art Liwa Plastics Industries Complex (LPIC) is likely to be finalised in April and the engineering, procurement and construction (EPC) work packages are likely to be awarded in the last quarter of this year.

Oman Oil Refineries and Petroleum Industries Company (Orpic), the project developer, has already finalised the pre-qualification process for the EPC work packages and expects to release a tender invitation for the qualified companies shortly.

The $3.6-billion project will capitalise on the synergies with the existing refinery and the growing global market for plastics, the company said.

The project will be executed through four EPC packages which include a steam cracker, polymer units, a natural gas liquids (NGL) extraction unit and a NGL pipeline from Fahud to Sohar.

 The Liwa Plastics Industries Complex will enable Oman, for the first time, to produce polyethylene, the form of plastic that is rated highest in terms of global demand.

Once LPIC starts operation, the plastic production in the sultanate will increase by one million tonnes, giving Orpic a total of 1.4 million tonnes of polyethylene and polypropylene production by 2018, the company said.

It said the EPC contractors will supply all the equipment and materials required for the implementation of the project based on an approved ‘vendor list’.

As part of Orpic’s commitment to support the local companies, it has invited them to register at Oman’s Joint Supplier Registration System (JSRS).

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