OQ ties up in US$88 mn deals for plastics projects in Oman

OQ ties up in US$88 mn deals for plastics projects in Oman

Omani state-controlled petrochemical producer OQ has signed nine agreements worth US$88 million with various downstream companies to establish polymer projects in its upcoming Ladayn Polymer Park (LPP) located in Sohar Industrial City.

These agreements were signed in line with Oman’s Vision 2040, which aims to develop Oman’s private sector while moving away from hydrocarbon use.

The park will have an area of 1 million sq m. LPP has been set up to integrate virgin plastic converters and plastic recyclers to increase Oman’s plastic self-sufficiency and circularity.

OQ estimates that the agreements will contribute around US$46 million annually to its in-country value, while creating 290 job opportunities directly and 600 indirectly. The in-country value is economic value added from local operations and spend retained in the country.

OQ is a key Middle East polyethylene (PE) and polypropylene (PP) producer for buyers in the region and in south Asia, southeast Asia and China. It operates a 340,000 tonne/year PP plant. It started up a new 300,000 tonne/year PP plant, a 400,000 tonne/year high density PE (HDPE) plant and a 440,000 tonne/year linear low PE/HDPE swing plant in 2021. These plants are located at Liwa Plastics Industries Complex in Sohar Industrial City.

OQ secured a deal in February to be the main supplier of required raw materials at preferential rates for the development of projects at LPP in Sohar Industrial City.