OQ
Launches Front-End Endangering Design Tender for Natural Gas Liquids Extraction
Plant

Muscat,
26 Feb 2026 (ONA) —- OQ Group has launched a Front-End Engineering Design
(FEED) tender for the Saih Nihayda Natural Gas Liquids (NGL) extraction plant.
The project will have a processing capacity of up to 48 million cubic metres
per day and represents a strategic step to reinforce the energy sector
ecosystem and maximise the added value of natural gas in Oman.

The
move will strengthen the regional gas supply chain and support industrial
diversification plans in Oman.

The
new facility will form part of a fully integrated NGL value chain linking
upstream extraction in Saih Nihayda with processing, fractionation, storage and
export infrastructure in the Special Economic Zone at Duqm (SEZAD). The
development includes a dedicated 230-kilometre, 16-inch pipeline and a
downstream fractionation complex in Duqm designed to separate key gas
components. Output will include ethane, propane, butane and C5+ condensates for
use in petrochemical and manufacturing industries within Oman and across
regional markets.

Ethane
extracted from the facility is expected to serve as a key feedstock for the
planned Oman Petrochemicals Complex in Duqm, positioning the project as a
critical enabler within the country’s evolving industrial platform.

Launching
the FEED tender for this strategic project reflects OQ’s commitment to
supporting the government’s economic diversification policies and its continued
focus on maximising the value of Oman’s natural resources by enhancing the
added value of natural gas. This reinforces the position of the Special
Economic Zone at Duqm as a global destination for high-quality industrial
investments.

The
project is wholly owned by OQ, underscoring its firm commitment to advancing
the petrochemicals sector in Oman. It further demonstrates progress in
delivering major projects that attract investments and strategic partnerships
in support of sustainable economic growth, while serving as a key feedstock
source for the Oman Petrochemicals Complex planned in Duqm.

The
project scope includes the construction of an NGL extraction plant in
SaihNihaydaand an advanced fractionation facility in Duqm capable
of separating approximately one million tonnes of gas components annually in
itsinitialphase. It will also involve the development of storage
and marine export facilities, refrigerated LPG tanks, and dedicated export
linesdirectly linkedto the liquid berth at the Port of Duqm.

Notably,
OQ has signed a 20-year gas supply agreement with Integrated Gas Company to
secure the required natural gas volumes for the facility. The long-term
arrangement enhances feedstock reliability and supports multi-decade planning
for Oman’s industrial expansion.

—Ends/AG