Octal Petrochemicals' New $1 Billion Oman Plant Targets Global APET Sheet Market

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Researched by Industrial Info Resources (Sugar Land, Texas)--The first stage of Oman's Octal Petrochemicals' plan to capture 20% of the $2.25 billion global amorphous polyethylene terephthalate (APET) sheet market has been marked by the start of construction on a $50 million tank farm at the company's site at Port Salalah in the southeastern part of the country. The tank farm will be part of the fist liquid-chemicals terminal in the region and is scheduled for completion in June 2008. The company has plans to invest $1 billion in developing the facility at Salalah to support the target of becoming the largest PET resin manufacturer in the Middle East.

The first phase will consist of two 5,000-ton stainless steel tanks for monoethylene glycol (MEG). The second phase will see the addition of a third 5,000-ton tank to accommodate expansion at the site. This is scheduled for completion by September 2009. The third phase will see six more tanks constructed at Octal's port site. These will be completed in 2011. Piping and transport infrastructure for the project will be ready in May this year. The first three tanks will hold MEG, and the remaining six will handle a range of chemicals.

Octal is building a state-of-the-art integrated polyethylene terephthalate (PET) and APET production plant in the Salalah free trade zone with an initial investment of $300 million. Octal's current production capacity is 30,000 tons per annum (TPA), rising to 330,000 TPA by early 2009. The company's global sales for 2008 could reach $500 million.

Discussions are taking place with Saudi Arabia's SABIC for the supply of MEG. Octal plans to pump the chemicals of vessels and then pump the feedstock for 1,000 meters underground to its main processing plant. This advanced system avoids the need for overland transport and improves safety, reliability and cost efficiency. This is in line with the company's strategy of sourcing raw materials from the Middle East in large quantities and at low cost. The tank farm will deliver the material in the most efficient way with secure environmental safeguards.

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