Omani state-owned energy company OQ signed 11 agreements worth in excess of $70mn under the Ladayn Polymer Programme (LPP) on the sidelines of the 19th Gulf Petrochemicals and Chemicals Association (GPCA) Forum in Bahrain today.
Six are new projects, and five are expansion of existing projects, Ladayn programme head Mundhar Saleh Al Rawahi told Argus. The investments are aimed at strengthening Oman's ability to convert locally-produced polymers into higher-value products.
The projects will offtake more than 90,000 t/yr of raw materials from OQ. Around 70pc of the output will be exported, while 30pc will be consumed domestically, according to Al Rawahi.
The agreements were signed with a "diverse set of local, regional and international polymer manufacturers", and cover a broad range of product categories responding to national priorities and market demand.
Nine factories will be inaugurated, Al Rawahi said, which will offtake a furhter 100,000 t/yr raw materials from OQ.
The 11 agreements bring investments into the LPP programme to around $220mn. The LPP project, located in Sohar Industrial City, was first announced in 2023. The programme is jointly developed by OQ and state-owned Madayn. LPP is located near the OQ polymer complex in Sohar, which supplies it with polymers, primarily polyethylene and polypropylene.
The agreements are in line with Oman's Vision 2040, which aims to develop the private sector while moving away from hydrocarbon use.
