Investors from China are considering plans to develop a pair of methanol projects in the Special Economic Zone (Sezad) at Duqm in Oman, said a report.
The proposed methanol schemes, implementation of which hinge on the availability of natural gas as feedstock, also have the potential to spawn the growth of downstream petrochemical businesses, said Chee Khian Lee, CEO of Sezad.
Lee said that the ventures are being mooted by two separate groups of Chinese investors.
He further noted that both are trying to first secure gas supply before they can decide on the next steps. Also both are looking at alternative feedstock supplies besides piped gas, including condensate and liquefied natural gas (LNG).
Moreover, Lee added that one of the two proposed methanol plants is backed by a Chinese group which has a subsidiary in neighbouring UAE, and the other is mooted by investors based in the north-eastern part of China where they source their feedstock requirements from Russia.
“They want to come to Duqm because their goal is to supply methanol to central Asia and the western part of China utilising the shorter route via the Pakistani port at Gwadar to access these markets,” revealed Lee.