BP, Oman Oil to conduct study for acetic acid project

MUSCAT: British oil giant BP and Oman Oil Company are conducting a feasibility study for building a major acetic acid project in Duqm, said Yusuf Al Ojaili, president of BP Oman here.

“We hope the project to be on stream by 2023-2024, in line with the development of a petrochemical complex by Duqm Refinery,” he added.

According to earlier reports, the project with a projected cost of $1 billion would manufacture acetic acid using BP’s patented technology–the SaaBre process. This is a new process for converting synthetic gas to synthetic acid, which helps in reducing manufacturing costs.

“Recently, we had a discussion with our partner and the government and both parties showed an interest in developing the project,” he said, adding; “It has a lot of potential for developing downstream derivatives in the Duqm area.”

Acetic acid is a versatile intermediate chemical, used in a variety of products, such as paints, adhesives and solvents, as well as in the production of purified terephthalic acid, used extensively for manufacturing polyester.

Few years ago, BP has signed a Memorandum of Understanding (MoU) with the Ministry of Oil and Gas to build the project, which will be of strategic importance to Oman’s economy.

Oman has already started a pipeline project to transport natural gas to Duqm from central Oman since natural gas is the feedstock for several petrochemical industries planned in Duqm. The 290 kilometrelong pipeline will be completed in 2019.