Methanolplant MO3000, Oman

A Continuing Success Story in Methanol Production

In Sohar, 250 km northwest of the capital city Muscat, we and our partners have constructed Oman's first methanol plant (MO3000). Over the last seventeen years we have built four plants of this kind, making our client the second largest provider of methanol in the world. Similar to the world's largest methanol plant constructed in Trinidad, the MO3000 plant in the Sultanate provided excellent starting conditions: a healthy investment climate, an outstanding infrastructure, natural gas, and a powerful local partner focusing intensively on petrochemical investment. Entering business like this requires a combination of particular qualifications. As a general contractor, we did not only develop and manage the project but also provided and implemented an innovative financing concept – skills that only a few contractors are able to offer.

Overview

Type of contract	Engineering, Procurement, Construction (EPC)
Client	Oman Methanol Company LLC (OMC)
Project	3,000 MTPD methanol plan
Plant capacity	3,000 tonnes a day (1,050,000 tonnes per year)
Plant site	Sultanate of Oman, Sohar
Scope of services	Contractor for engineering, procurement, equipment and material supply
Special servives	Structured project financing
Main plant sections	Process unit, utility systems, methanol tanks, buildings, natural gas receiving and measuring station
Technology partners	Compressors and turbines from MAN TURBO; Reformer waste heat unit from MAN DWE; Engineering from Toyo Engineering Corporation, Japan; Detail engineering from Toyo Engineering India Ltd., India, e.g.
Process/Licence	Johnson Matthey Catalysts' Low Pressure Methanol (LPM) Process, Johnson Matthey PLC, Great Britain
Loans	KfW-loans with ECA coverage by Euler Hermes
Target markets	Methanol for the chemical industry in Europe and Asia
Volume	US$500 million
Fertigstellung	2007

Intelligent Project Development, Innovative Business Model

In order to assure the profitability and success of major projects like the MO3000 plant, fifteen years ago we developed a new business model that we call financial engineering. Together with our partners we set up project companies in the respective country. We take over equity and thereby the entrepreneurial risks. The benefit of this concept is that we are involved in all business decisions and the structuring of all sections along the chain of value creation, e.g. methanol production, transport, product marketing, etc. Our model of equity participation has proved to be an advantage for the client / project company: our collaboration has been instrumental in completing all plants within or ahead of the agreed schedule and within budget. Furthermore we met or exceeded the agreed production capacities – good prospects for the MO3000 plant that has commenced operations in autumn of 2007.

Powerful Market for Methanol

For the Oman plant we were the responsible contractor for the supply of engineering, equipment, and materials. The complete construction, commissioning and start-up services were being undertaken by Omani firms. The target market for methanol produced by the MO3000 plant is the chemical industry in Europe and Asia. Methanol has a high market potential as a fuel for power plants and vehicles (biodiesel) and above all as a feed material for further processing by the chemical industry. At normal temperatures and atmospheric pressure methanol is a liquid and can therefore be transported economically by ship or truck over large distances.

Key application fields for methanol

formaldehyde
solvents
acetic acid
fuel cells
fuel additives

Fazit

Each and every one of our projects depends on collaboration with the regional and local firms. This also applied to Oman where we were responsible for the offshore contributions to the project, engineering services, and purchases for the entire plant. These included material supplies, equipment, and plant sections like process unit, utility systems, methanol tanks, and the natural gas receiving and measuring station. The onshore contributions, essentially local construction and erection services, were provided by the Omani firm Oman Proman Contracting & Trading LLC (OPCT).