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Study on Renewable Energy Resources, Oman - authority for ...

Study on Renewable Energy Resources, Oman - authority for ...

Renewable Energy Resources in Oman 3.2.1 Industrial Estates Manufacturing industry has generally been located on the country’s industrial estates. Established in 1983, Rusayl is Oman’s flagship industrial estate. From its initial 12 factories, Rusayl is now a bustling estate with over 130 factories in operation, a further five in construction and 40 under consideration. Factories in operation produce a wide spectrum of consumer as well as industry orientated products, ranging from: • Chemicals • Batteries • Electrical • Building materials • Fibre optic cables • Foodstuff • Textiles • Garments • Stationery • Paints Other industrial estates include the Raysut Industrial Estate in Dhofar, as well as those at Sohar, Nizwa, Sur and Buraimi. There is also a free-trade zone (FTZ) in Al Mazunah, near the border with Yemen, and Oman is finally proceeding with plans to create an FTZ in Salalah. However, the Salalah Free Zone will still face stiff regional competition from well-established, successful free-trade zones such as Jebel Ali in Dubai. Sohar Industrial Estate covers an area of 334 hectares, of which 130 hectares have been developed and subdivided into 226 plots. Established in November 1992, and ideally located mid-way between Muscat (200 kilometres) and Dubai (180 Kilometres) Sohar – Oman’s garden city – offers tenants easy access to domestic as well as international markets. The estate is home to 60 businesses, 18 units under construction and a further 44 are expected to come on stream in the near future. On the estate’s doorstep is Sohar Port, a large three-phase project which began late-1999. Indeed, the Port has helped to generate considerable international interest in Sohar Industrial Estate. Page 32 of 134 .

Renewable Energy Resources in Oman Production on the estate includes: • Marble • Paper recycling • Foodstuffs • Detergents • Leather • Furniture • Toothpaste • Beverages • Ice cream • Resins • Glass • Steel bars • Engine oil 3.2.2 Liquid Natural Gas (LNG) The discovery of large reserves of natural gas in the late 1980s and early 1990s paved the way for development of gas-based industry in Oman. The success story has been the LNG facility in Sur, which began exporting in April 2000, driving a sharp rise in the otherwise sedate average growth rate for the manufacturing sector. Oman LNG is a joint venture between the Omani government (51%), Royal Dutch/Shell (30%), Total (5.54%), Korea LNG (5%), Mitsubishi (2.77%) and Mitsui (2.77%) of Japan, Partex (2%) and Itochu (0.92%, also of Japan). Long-term sale and purchase agreements (SPA) with Korea Gas Corporation, Osaka Gas of Japan and Dabhol Power of India account in theory for most of the facility’s output. In 2002 the Omani government announced that it had decided to construct a third LNG train to operate alongside the existing two at Sur, ultimately lifting total production to slightly over 10m tonnes/year (t/y). The Qalhat LNG facility, which was formally commissioned in March 2006, is a single train with capacity of 3.7m t/y. The owners of Qalhat LNG are the Omani government (55.8%), Oman LNG (36.8%) and Union Fenosa of Spain (7.4%). Given the government’s 51% stake in Oman LNG, this means that the state (directly and indirectly) owns 78% of shares in Qalhat LNG. Union Fenosa has a 20-year sales and purchase agreement (SPA) for some 1.65m t/y of LNG, or 50% of planned output. 3.2.3 Other gas-based industry Gas-based industrial development is central to Oman’s diversification plans. Much of it will be based in Sohar, where there is a new industrial port with dedicated container-handling facilities, and gas is supplied by pipeline from central Omani fields. In 2004 the US Dow Chemical Company agreed to take a 50% stake in a USD 2.6bn polyethylene plant to be constructed in Sohar. OOC and the Omani government jointly took the remaining 50% stake in the Oman Petrochemical Industries Company, which intends to produce between 800,000 and 1m t/y of polyethylene. Page 33 of 134 .

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