Sino-Oman Industrial City, planned at an estimated cost of US$10.7bn and home to Duqm’s second oil refinery, has commenced initial groundwork on the SEZ site, according to reports
In May 2016, the authority inked a deal with Oman Wan Fang LLC, which represents a consortium of six private Chinese corporations, for the establishment of a new investment hub within the SEZ. Dubbed ‘Sino-Oman Industrial City’, the venture is a dedicated industrial park within the SEZ.
Covering an area of 1,172 ha – USthe single area of land leased to a developer in the Sultanate – the oil refinery, with a processing capacity of 230,000 bpd, will be similar in size to the US$6bn Duqm Refinery currently under construction in another part of the SEZ. A petrochemicals complex will also be built alongside the new refinery.
Outlining his plans for the progressive development of the Industrial City, Ali Shah, chairman of Wan Fang Oman LLC, said that the company was in talks with Oman’s Ministry of Oil and Gas to secure the gas requirements of some of the heavy petrochemical and industrial ventures envisioned at the park.
“Heavy industries will require a great deal of energy for the production of petrochemicals derivatives, aromatics, methanol, feedstock for which we will provide through the establishment of a refinery in the SEZ,” Shah added.
Oman Observer stated that Chinese contractor Duqm Ningxia Construction Company was currently involved in the preparation of the sprawling site that will house many heavy, medium and light industries, and also a host substantial tourist, commercial and healthcare components.
A team of officials from Duqm Ningxia Construction were based at the SEZ to help oversee the development of roads, office and residential facilities.
The initial facilities will serve as a stepping-stone for the phased development of the scheme planned over the next several years, according to a report in Duqm Economist, a quarterly newsletter published by the Duqm SEZ Authority (SEZAD).
Also driving the demand for gas as fuel and feedstock will be a number of gas-based industries including a steel mill, aluminium smelter, tyre manufacturing factory, magnesium plant, urea scheme, and factories manufacturing cement, building materials and glazed glass – part of a portfolio of 35 substantial industrial investments planned at the park.
Elsewhere within the Sino-Oman Industrial City, the developer plans to set up a Light and Medium Industries Zone earmarked for, among other investments, assembly plants, automotive assembly units, halal foods processing, logistics based ventures, and e-commerce units, solar-based equipment, car batteries, oil and gas tools, bicycle assembly units and apparel production facilities.
Initial elements of the basic infrastructure and support facilities that fall within the developer’s remit will be ready by the end of 2017, Shah revealed.
