Bid & Tender

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Project Summary
Project Name: Orpic’s Liwa Plastics Project
Facility Type: Petrochemical
Client: Oman Refineries & Petroleum Industries Company (Orpic)
Budget (US $): 6,700,000,000
Project Initiation: Not Given
Project Completion:: Dec 20, 2021
Status: FEED Awarded,EPC Awarded,
Location: Sohar
Project Current Status

Liwa Plastics mega project has been launched. The Complex, which consists of four key components, of which the second, third and fourth components are currently in commercial operation, with the integrated commercial operation of the first completion on track to reach full production capacity by Q1, 2022 in line with the project delivery schedule. The project aims to strengthen the industrial sector by producing 880,000 tons annually of polyethylene and about 300,000 tons per year of polypropylene, which will increase Oman’s production of the two polymers to 1.4 million tons per year. (December 2021)

Project History
  • Oman Refineries & Petroleum Industries Company .Orpic. prepares to issue the front-end engineering and design .feed. tender for its steam cracker and petrochemicals complex in Sohar within the next two months. .July 2013.
  • The front-end engineering and design tender has been released for the planned steam cracker and petrochemicals complex project. .August 2013.
  • FEED bids are due to be submitted by 17 November. .November 2013.
  • Feed and PMC contracts have been awarded for the project. The feed contract, which includes the cracker technology license, has been awarded to CB&I of US and the PMC contract has been awarded to Engineers India Limited .EIL.. .March 2014.
  • Financial adviser tender has been released. Bidders have been asked to submit proposals by 6 May. .April 2014.
  • The first stage of the two-stage pre-qualification for the EPC work packages has been completed. (December 2014)
  • Front-end engineering and design for Liwa project has been completed. (May 2015)
  • 19 companies have been pre-qualified for the project’s four packages. (May 2015)
  • Bids have been submitted for the project packages. Five technical bids have been received for a polymers plant in Sohar industrial area and three technical bids for an NGL extraction plant in Fahud. (August 2015)
  • Preferred bidders have been named for three of four packages of the project, namely, the Natural Gas Extraction Unit in Fahud, the NGL pipeline between Fahud and Sohar and the three plastics plants in Sohar. The contractors selected are – Tecnimont, JV GS Engineering & Construction Corp, Mitsui & Co and Punj Loyd. In the next 2 weeks, a detailed discussion will be held with the preferred bidders in order to finalise the contracts. (October 2015)
  • Orpic in negotiations with lowest bidders for the steam cracker package. (October 2015)
  • A consortium of CB&I of Netherlands, Saipem of Italy and CTCI of Taiwan has emerged as the frontrunner for the steam cracker package. (October 2015)
  • A notice of intention of award valued at approx $2.8bn to provide EPC for cracker Package 1 for the project has been received by a consortium led by CB&I. (November 2015)
  • Four EPC packages worth $ 4.5bn have been awarded for Liwa Plastics Industries Complex (LPIC) Project: EPC 1 (Steam Cracker and Utilities): CB&I and CTCI Corporation Joint Venture; EPC 2 (Plastics units): Technimont S. p.A (valued at $895mn); EPC 3 (NGL Extraction): GS Engineering and Construction and Mitsui & Co. Ltd Joint Venture; and EPC 4 (NGL Pipeline): Punj Lloyd Ltd (December 2015)
  • Oman Oil Refineries and Petroleum Industries Company SAOC, (‘ORPIC’) has appointed Aljabr-Talke & Co. LLC as a consultant for Study of Alternate Logistic Design for Polymer Plant of Liwa Plastics Industries Complex (LPIC). The contract value is 19,800 USD. (October 2015)

  • More than 20 local and international bank and financial institutions and export credit agency have committed to provide $3.8bn for the scheme. Financial close expected in early 2016. (December 2015)
  • Orpic secures $3.8 billion in project financing for the project. (March 2016)
  • A number of regional and international firms are competing for a contract award for the establishment of a 13,200 cu m per hour capacity nitrogen gas plant to be built on BOO basis to serve the needs of the LPIC project currently under development in Sohar. (July 2016)
  • Orpic has laid the foundation stone on 10 October for the two parts ‘I and II’ of the project that includes the steam cracking unit at a cost of $2.8 billion, and the polypropylene and polyethylene production unit at a cost of $888 million. Punj Lloyd of India has started implementing the 300-km pipeline project to transport natural gas liquids from the Fahud station to Sohar Industrial Port at a cost of $112 million. This is the fourth part of the project. (October 2016)
  • Client will lay the foundation stone for the $688 million natural gas liquids extraction station of the project in January. The Fahud project, which will be implemented by the Korean GS Company and Japanese Mitsui Company, is the third part of the project. (October 2016)  
  • Siemens has won a supply contract from Korean group GS Engineering & Construction for two gas turbine-driven compressor trains and two gas turbine generator packages sets for the project. The NGL plant, once operational in 2019, will increase plastics production to 1.4 million tonnes per annum from 200,000 tonnes. (March 2017)
  • Air Liquide has signed a €20 million contract with Orpic to build a nitrogen production plant in Sohar, which will have a total capacity of 500 tonnes of nitrogen per day. Under the contract, nitrogen will be supplied to Orpic’s plastics production complex (LIWA). The nitrogen plant is expected to start operations in the first quarter of 2019. (April 2017)
  • Orpic laid the foundation stone for its $688 mn-natural gas liquids extraction plant in Fahud, which forms the third EPC package of the $6.4bn Liwa Plastics Industries Complex (LPIC). This plant will be linked via a pipeline with the project main plants in Sohar as part of an integrated complex that houses also Sohar Refinery, aromatics plant, and polypropylene. (April 2017)
  • Yokogawa Electric Korea has received an order to supply an analyzer package solution for the Liwa project. This package order is for 15 analyzer houses and associated analysis systems consisting of process analyzers and sampling instruments. The analyzer houses will be delivered by the third quarter of 2018. (June 2017)
  • Orpic and OGC has signed an agreement for the operation and maintenance of a NGL Extraction plant (NGLE) and associated pipelines. A roughly 300 km 14 inch pipeline connecting the Fahud NGLE plant with the Sohar complex will also be operated and managed by OGC as part of this arrangement. The LPIC project is currently underway with a 67% overall progress. (July 2018)
  • Construction is ongoing and is expected to be completed by 2020. (October 2018)
  • OGC is constructing a 36-inch pipeline running around 250 km from Fahud to Sohar. The pipeline is being built along a separate line carrying NGLs from Fahud to the ethylene cracker facility of Orpic’s Liwa Plastics project. (October 2018)
  • The $888mn plastic package, known as EPC 2, of the LIWA project has been completed. (November 2019)
  • The steam cracker package is on track for completion in the first quarter of 2020. (January 2020)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Technip
  • KBR - Kellogg Brown & Root
  • Linde
  • CB&I of US
  • CB&I of US
  • KBR - Kellogg Brown & Root
  • Linde
  • Technip
  • CB&I of US( )
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • EIL - Engineers India Limited
  • EIL - Engineers India Limited
  • EIL - Engineers India Limited( )
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • CB & I
  • South Korea's GS Engineering & Construction Corp
  • Daelim Industrial Co
  • Tecnimont
  • Toyo
  • Mitsui & Co
  • Punj Lloyd
  • CB & I
  • Daelim Industrial Co
  • Mitsui & Co
  • Punj Lloyd
  • South Korea's GS Engineering & Construction Corp
  • Tecnimont
  • Toyo
  • CB & I($2.8 billion)
  • Punj Lloyd
  • South Korea's GS Engineering & Construction Corp
  • Tecnimont($895 million)
Related Projects
ORPIC’s Sohar Refinery Improvement/Expansion Project
Project Schedule

March 2014: FEED and PMC Contract Awarded 
May 2015: EPC Pre-qualification 
August 2015: Bid Submission EPC

December 2015: Contract Award EPC

2022: Expected Commissioning & start-up

Project Scope

The project scope involves the construction of a steam cracker and petrochemicals complex in Sohar in the north of the emirate. 

 

It includes a new gas extraction plant at the Fahud field in central Oman and a 300-kilometre pipeline connecting it to Sohar to provide feedstock. The project will use both natural gas and products from Orpic’s Sohar refinery. 

 

The project, named the Liwa Plastics Project, will involve the design and then construction of a mixed-feed steam cracker as well as several chemical units. 

 

The scope includes: 
800,000 tonnes-a-year (t/y) steam cracker 
300,000 t/y high density polyethylene (HDPE) unit 
500,000 t/y linear low density polyethylene (LLDPE) unit 
215,000 t/y polypropylene (PP) 
40,000 t/y methyl tertiary butyl ether (MTBE) 
45,000 t/y butane-1 

 

The steam cracker will be fuelled by natural gas liquids, refined dry gas, mixed liquid petroleum gas and condensate. 

 

Orpic’s current operations in Sohar have the capacity to produce 818,000 tonnes a year (t/y) of paraxylene, 198,000 t/y of benzene and 340,000 t/y of PP.

 

The nitrogen gas plant with capacity of a 13,200 cu m per hour capacity will be built on the periphery of the petrochemicals complex. The captive gas plant will be required to cater to the nitrogen requirements of the mammoth scheme for a period of 20 years from the commercial commencement date.

 

Nitrogen gas – of 99.9 per cent purity – will be supplied to two key components of the LPIC scheme. While the centrepiece steam cracker plant has a requirement of around 6,400 cu m per hour during normal operation, the adjoining polymer complex has a projected need of around 6,800 cu m per hour of nitrogen gas.

 

Project Structure:
The project client is the Oman Refineries & Petroleum Industries Company (Orpic). The financing is supported by export credit agencies representing the governments of Italy, the Netherlands, South Korea, the UK and Germany, along with 19 international, regional and local commercial lenders.
AngelloSanna
Address: Tecnimont Italy Viale Monte Grappa 3 20124 Milan Italy
Designation: Managing Director
Phone: .+2. 6313 9346
Fax: .02. 6313 9536
DD Bertoldi
Address: Technimont
Designation: Project Director
Department: Tecnimont - Projects
Phone: +971 2 645 0988
Fax: +971 2 644 7553
MarcoBardi
Address: Tecnimont Italy Viale Monte Grappa 3 21024 Milan Italy
Designation: Project Manager
Phone: .+2. 6313 9346
Fax: .02. 6313 9536
T.Ichijo
Address: Mitsui Engineering & Shipbuilding Arabia Ltd .MESAR. MESAR Jobsite Office PO Box 1838 Al Jubail 31951 KSA
Designation: Mitsui Representative
Phone: .+966. 3 357 7396
Fax: .0966. 3 358 4656