Salalah Methanol Company (SMC), a wholly-owned subsidiary of Oman Oil Company (OOC), has secured a $728m recourse project financing for its ammonia plant in Oman.
The 12-year project finance facility has been secured from a mix of international, regional and local financial institutions.
Of the total project financing, nearly $443m will be invested for the development of the Salalah Ammonia Project, while the remaining fund will be used to refinance SMC’s existing debt.
The project will include setting up associated utilities, export facilities and off-site infrastructure.
The ammonia plant, which will use methanol plant’s hydrogen rich by-product gas as feedstock, will have a production capacity of 1,000 metric tonnes per day (MTPD) of anhydrous liquid ammonia.
Construction work is expected to commence in the fourth quarter of this year and project completion is scheduled during 2020.
OOC said that the new plant will tap purge gas from the methanol plant, which requires significantly less cost when comparing to a greenfield ammonia plant of similar capacity, making it a highly competitive producer globally.
SMC managing director Awadh Al Shanfari said: “Salalah Ammonia Project has been able to successfully secure limited recourse financing amid challenging global financial and economic conditions.
“This reflects the trust that financing institutions have placed on the project and the financing structure, which is demonstrated by the fact that the lending group comprises of local, regional as well as international lenders.”