World's Largest Paraxylene Plant to Begin Commercial Production by Year's End

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Researched by Industrial Info Resources (Sugar Land, Texas)--Aromatics Oman Limited (Sohar, Sultanate of Oman) is set to begin commercial production of paraxylene and benzene at the $1.6 billion aromatics complex in Oman's Sohar Industrial Port region by the end of this year. Upon commissioning, the plant will be the world's largest greenfield paraxylene facility, with a production capacity of 814,000 tons per year. It will also produce 210,000 tons per year of benzene from naphtha feedstock procured from Sohar Refinery Company LLC (Falaj Al-Qabail, Oman).

Aromatics Oman is a joint-venture entity set up in 2005 by Oman Oil Company SAOC (Muscat) with a stake of 60%; Oman Refineries and Petrochemicals Company LLC (Ruwi) with a stake of 20%; and LG International Corporation (SEO:001120) (Seoul, South Korea) with a stake of 20%. Aromatics Oman will operate the aromatics complex.

The project achieved financial closure in less than six months of securing approval for development. HSBC Bank Middle East Limited (Jersey, Channel Islands) was the financial adviser for the project. About $800 million was obtained from the Export-Import Bank of Korea (Seoul) and commercial banks, and the remaining amount was procured through equity investment by the three shareholders.

GS Engineering & Construction Company (SEO:006360) (Seoul) and LG are the engineering, procurement and construction contractors for the aromatics complex. Axens (Rueil-Malmaison, France) is the technology license provider, and Uhde GmBH (Dortmund, Germany) is providing basic engineering services for one of the processes involved in the six-stage ParamaX technology suite provided by Axens.

Sohar Refinery will provide naphtha feedstock for the aromatics complex from a nearby refinery that was commissioned in April 2006. The aromatics complex was developed near the refinery in order to create an integrated facility. The aromatics complex will be the largest greenfield facility of its kind in the world and is expected to generate sales of more than $750 million per year. Paraxylene is used to produce polyester fibers and polyethylene terephthalate plastic bottles. Benzene is used in downstream applications, including the production of styrene and linear alkyl benzene.

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