NewVision upstream

News Digest (www.upstreamonline.com)

State-owned operators in the Middle East, including Oman's OQ, QatarEnergy, and Abu Dhabi National Oil Company (Adnoc), are actively expanding their capabilities for Natural Gas Liquids (NGL) production. NGLs are widely used across industrial and transportation sectors, driving this regional push for increased capacity and infrastructure.

Oman's OQ NGL Project

Oman’s OQ has initiated the front-end engineering and design (FEED) contract process for a new NGL extraction plant. The company is seeking interest from leading domestic and international contractors for a pre-qualification process, with the aim of finalizing its list of pre-qualified FEED contractors by early next year. The NGL extraction facilities will be located in Saih Nihayd in central Oman. The extracted NGLs will then be transported to Duqm for fractionation and storage before export. OQ intends to carry out a competitive FEED study that is expected to roll over into the project's engineering, procurement, and construction (EPC) phase, allowing leading EPC players to participate.

OQ has secured a critical feedstock supply for the project through an agreement with Oman's Integrated Gas Company (IGC). This agreement guarantees the delivery of 48 million cubic metres per day of natural gas for 20 years to the Saih Nihayda NGL extraction project. Phase One of the project is likely to include gas separation, storage, and export facilities within the Special Economic Zone at Duqm.

QatarEnergy's NGL-5 Expansion

In a related development, QatarEnergy is advancing its own NGL production capabilities with a significant expansion project. A consortium comprising India’s Larsen & Toubro (L&T) and Greece's Consolidated Contractors Group (CCC) has been awarded a contract for an 'ultra-mega' NGL plant and allied facilities. The scope of work includes the engineering, procurement, construction, installation, and commissioning of an NGL plant for processing Rich Associated Gas (RAG), including all associated utilities and integration with existing facilities.

This project, known as NGL-5, is part of the expansion of QatarEnergy's NGL plants in Mesaieed Industrial City. The four existing plants at Mesaieed currently produce propane, butane, and condensate primarily for export. The addition of the NGL-5 facility is a keenly watched megaproject aimed at further scaling up Qatar's production capacity, boosting overall NGL output, replacing older units, and enhancing the efficiency of gas processing from key facilities.



This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Nishant Ugal. All rights to the original text and images remain with their respective rights holders.

19 November 2025

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