Oman and India plan to jointly build a large fertilizer complex at Sur near the site of a proposed Omani natural gas liquefaction plant.
Preliminary design of the $775-850 million project and selection of process technology and an engineering and construction contractor to manage the work are to be settled by a feasibility study to be completed by second quarter 1995. Engineering and construction of the Sur fertilizer plant are to begin immediately upon completion of the feasibility study. Commissioning is expected in late 1998 or early 1999.
Once in operation, the complex is expected to consume about 49 bcf/year of gas and produce 1.4 million tons/year of urea for export to India and 315,000 tons/year of merchant grade ammonia.
Under current plans, the project's main components include a gas feed pipeline, two 1,750 metric ton/day ammonia trains, two 2,200 ton/day urea trains, ammonia and urea storage, off site utilities, a dock, and material handling equipment.
Representatives of the governments of Oman and India last month agreed in a memorandum of understanding to jointly sponsor, design, construct, finance, and operate the fertilizer plant (OGJ, Aug. 8, p. 26).
Also parties to the agreement were Krishak Bharati Cooperative Ltd., Oman; Rashtriya Chemicals & Fertilizers Ltd, India; and Oman Oil Co. Ltd. The three companies are to form a joint management team to complete the project's technical and economic evaluations and implement its development.
BOOSTING GAS VALUE
The fertilizer project is part of Oman's long term plan to find outlets and obtain maximum value for its expanding gas resource base. Recent deep gas discoveries at Barik, Saih Nihayda, and Saih Raw provide the impetus for the fertilizer plant and other projects that rely on gas.
The fertilizer complex was given top priority after Oman in the mid-1980s began trying to develop an industry capable of using large volumes of gas. Projects studied were rated based on technological capabilities, global market potential, scale needed to attain economic operations, and potential for synergy.
Sur was picked as the site of the fertilizer complex after a study that began in 1991 found Sur offered the best package of characteristics available among possible locations. Key advantages of the area include large tracts of available land with required soil conditions, deep water for construction of an export jetty, good year-round weather and marine conditions, and a nearby large population center and the gas liquefaction plant.
India's demand for nitrogen fertilizers is expected to increase by 1996-97 to 11.5 million tons/year, resulting in a 2 million ton/year supply shortfall given the country's projected 1997 production capacity of 9.5 million tons/year. Two million tons of nitrogen fertilizer is equal to about 4.3 million tons of urea.
By 2001-2002, India's fertilizer capacity is expected to fall short of demand by about 3.6 million tons/year, a urea deficit of 7.8 million tons/year.
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