Oman’s integrated energy group OQ has officially opened the tendering process for a major Natural Gas Liquids (NGL) extraction project at Saih Nihayda, marking a significant step in the country’s strategy to strengthen its downstream and petrochemicals value chain.
The company has invited both local and international engineering firms to participate in the prequalification round for the Front-End Engineering Design (FEED) contract. The project will serve as a key supplier of feedstock for the large petrochemicals complex planned at the Special Economic Zone at Duqm.
Project to Strengthen Oman’s Integrated Energy Network
In its announcement, OQ described the NGL development as a crucial component of Oman’s broader plans to build an integrated energy infrastructure. The project spans the full NGL value chain—from extraction in Saih Nihayda through transportation, fractionation, storage and export facilities in Al Duqm.
The company aims to shortlist firms capable of handling FEED, detailed engineering, procurement and construction (EPC), including commissioning and performance guarantees for the full LPG/NGL system.
Long-Term Gas Supply Secured
The tender follows a major agreement signed earlier this month between OQ and the Integrated Gas Company (IGC), Oman’s sole natural gas supplier. Under the 20-year supply term sheet, IGC will deliver 48 million cubic metres of natural gas per day to the new Saih Nihayda NGL plant, ensuring a stable feedstock base for the project.
Phase One will include gas separation, storage and export facilities at Duqm. Gas allocations under Phase Two will support the upcoming Duqm Petrochemicals Complex, which is expected to house an ethane production plant with a capacity of about one million tonnes per year. This alignment is designed to boost in-country value creation and build a robust downstream ecosystem in the region.
Building on Existing NGL Infrastructure
Oman already operates a dedicated NGL extraction facility at Fahud, which came online in 2020 to supply the Liwa Plastics Industries Complex in Suhar. That project included a 300-kilometre NGL pipeline and represented an investment of around $688 million. The Qalhat LNG complex also produces NGLs as a by-product of LNG processing.
The new Saih Nihayda project is expected to complement these existing assets while supporting the long-term growth of Oman’s petrochemicals industry.
Prequalification Deadline Set
Engineering companies interested in the FEED tender must submit their prequalification documents by December 10.