Oman will start operating a plant to process gas from the Khazzan gas field early September, the Oman news agency quoted an oil and gas ministry official as saying.
The first train has a capacity of 500 million cubic feet per day of gas, while the second train, which has a similar capacity, will be in operation in early 2018, Salim Al Aufi, Undersecretary at the Omani Ministry of Oil and Gas said.
“The local market will have a share of the gas produced from Khazzan gas field. Some quantities will be also exported to be used as feedstock for Oman LNG and Qalhat LNG,” he said.
A portion of the production has been also allocated to the Special Economic Zone in Duqm through a gas pipeline that will be completed by the end of 2019, he added.
BP said in November last year that the first phase of the plant project is more than 80 percent complete and remains on schedule to deliver first gas in late 2017, producing 1.0 billion cubic feet of gas a day (bcf/d).
BP Oman is lead partner in the project with a 60 percent interest. Oman Oil Company Exploration & Production holds 40 percent.
The two companies agreed last year to extend licensing agreements, paving the way for the development of a second phase of the giant Khazzan tight gas field, and increasing expected production by 50 pct.
Aufi said the Sohar to Muscat fuel pipeline for Orpic-owned Al Jafnin Terminal has been completed and the first consignment through the pipeline has been delivered through the pipeline as a trial stage.
"We need to fill the pipeline completely and then take it to the tanks in the terminal, which will start actual operation by the end of next August,” he said.
Aufi expected oil to trade within $50-$55 for more than a year. He reaffirmed the sultanate's commitment to continue to deliver on its share of the cut agreed by global oil producers.