Oman’s integrated energy group, OQ, has announced the launch of a front-end engineering design (FEED) tender for its Saih Nihayda natural gas liquids (NGL) extraction facility — a key project in the Sultanate’s plan to maximise the value of its natural gas resources and advance economic diversification goals.
Designed to handle up to 48 million cubic metres of natural gas per day, the proposed facility represents a significant step in Oman’s strategy to expand downstream gas processing capacity and boost the contribution of the energy sector beyond crude oil exports.
The project will integrate upstream operations at Saih Nihayda with downstream infrastructure in the Special Economic Zone at Duqm (SEZAD), creating a continuous processing and export chain for multiple high-value gas products.
According to the Omani News Agency, the new facility will produce propane, butane, ethane, and C5+ condensates for use in Oman’s petrochemical and manufacturing industries, as well as for export to regional markets.
All products will flow into OQ’s fully integrated value chain, linking the central gas field to Duqm via a 230-kilometre pipeline network and onward to marine export terminals at the Port of Duqm.
Ethane from the Saih Nihayda plant is expected to supply feedstock to the planned Oman Petrochemicals Complex in Duqm, positioning the project as a central pillar in developing the Sultanate’s downstream and petrochemical sectors.
The Duqm fractionation plant, part of the project’s scope, will have the capacity to separate about one million tonnes per annum (mtpa) of gas components in its initial phase.
In addition to the extraction and fractionation facilities, the infrastructure package includes storage systems for liquefied petroleum gas, marine export infrastructure, and dedicated export pipelines connecting to SEZAD’s liquid berth.
This expansive design supports OQ’s long-term aim of establishing Duqm as a globally competitive industrial and logistics hub.
To secure a sustainable supply of feedstock, OQ has signed a 20-year gas supply agreement with the Integrated Gas Company, guaranteeing consistent natural gas volumes for the plant’s operations.
This long-term agreement strengthens the project’s commercial foundation and supports the national objective of securing feedstock for Oman’s growing industrial base.
Commenting on the FEED tender, OQ said the launch reflects its commitment to supporting the government’s economic diversification agenda while enhancing the role of natural gas as a foundation for industrial development.
The company emphasised that the project’s fully integrated design, from extraction to processing, storage, and export, will enable Oman to capture greater value across the energy value chain.
Once operational, the Saih Nihayda NGL extraction plant is expected to contribute significantly to job creation, industrial investment, and regional infrastructure development.
Its integration with SEZAD underscores OQ’s strategy to leverage Duqm’s growing significance as an investment destination connecting upstream resources with downstream industries and export markets.
The Saih Nihayda project joins a series of strategic developments driven by OQ and the Omani government aimed at reinforcing the nation’s energy independence, industrial resilience, and long-term sustainable growth.