OQ, the Sultanate’s global integrated energy conglomerate, announced the start of production of derivatives at the Ammonia Plant in the Governorate of Dhofar.

The newly-sanctioned Ammonia (chemical formula: NH3) plant is one of the key strategic projects fully owned by OQ with an investment of US$463mn. It has a designed operational capacity of 1,000 metric tonnes per day (MTPD) of Ammonia.

OQ Trading, the Group’s trading arm, also announced export of the first shipment of liquid ammonia from the plant through Port Salalah.

Commenting on the announcement, Hilal Ali Al Kharusi, CEO of the Commercial and Downstream Unit at OQ, said: “The Ammonia project comes within OQ’s efforts to enhance the added value of natural resources and support the Omani government’s economic diversification plans.

“The Plant will export its products to targeted global markets, especially in Asia, further contributing to the enhancement of the Omani exports.

“The start of production operations in the plant is a key milestone that enhances the contribution of OQ Group. The demand for ammonia products in the global markets is witnessing constant growth leading to higher returns. This situation renders the project highly feasible.”

Mr. Al Kharusi added that the plant is fully integrated with the existing 1mn tonnes per year capacity Methanol plant which will enable OQ Group to rationalise the cost and optimise performance and production efficiency.

The new Ammonia plant has been designed to retain the hydrogen-rich purge gas generated by the methanol plant as feedstock for the Ammonia plant to increase the overall efficiency of operations.

Ammonia is used as a key ingredient in the production of fertilizers and is an important intermediate chemical in the manufacturing of synthetic resins, detergents, coolants, synthetic fibers, and polyurethanes, among other applications.

Ammonia is also used in the production of green hydrogen which is a key component of OQ’s Energy Transition agenda.