Construction of a world-scale petrochemical plant is due to start next month (January) at the Salalah Free Zone (SFZ) in Oman.

The caustic soda and ethylene dichloride venture, promoted by Saltic, is being developed with an investment estimated between $500 million and $600 million.

When operational in 2015, the project will add to a growing cluster of large-scale petrochemical schemes at the free zone, currently comprising a methanol plant run by Salalah Methanol Company, and a giant PET (polyethylene terephthalate) complex owned by Octal Petrochemicals.

Additionally, the latest venture will not only boost liquid cargoes handled by the adjoining Port of Salalah, but also open up opportunities for investment in an array of downstream value-added investments.

It is understood that a leading South Korean firm has been selected by Saltic, an Oman-based company registered at Salalah Free Zone, to execute the project on an engineering, procurement and construction (EPC) basis.

The completion of the project is slated around the middle of 2015.

The state-of-the-art complex is expected to produce 1,000 tonnes per day (tpd) of caustic soda and 1,231 tpd of ethylene dichloride.

The project will be built on a roughly 35-hectare plot acquired from Salalah free zone on a 25-year lease (extendable).

It is understood that a major liquid jetty current under construction as part of the port’s ongoing expansion, will facilitate the handling of ships bringing feedstock for the project, as well as for the loading of liquid cargoes for export.