SOHAR Port and Freezone Inks Landmark Deals for US$550 Million Petrochemical Complex

SOHAR Port and Freezone has signed two landmark agreements with subsidiaries of MAK Germany, in partnership with OQ Refineries and Petroleum Industries Company to develop a fully integrated industrial complex for the production of Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET).

The agreements - concluded with Freezone entity Sohar Petrochemicals and Sohar International Minerachem - pave the way for a major investment of approximately US$550 million spanning 11.9 hectares at SOHAR Port and 53.6 hectares at the SOHAR Freezone.

The development is designed as a dual-location project that combines advanced petrochemical manufacturing with efficient port logistics and bulk handling.

At the core of the project is a strategic decision by MAK Germany to relocate an existing PTA and PET production facility from the Port of Rotterdam in Europe to Oman, a move that underscores strong confidence in SOHAR’s industrial environment and its integrated operating ecosystem.

Sohar Port and Freezone Streamlines Transport of 69 Oversized Units

Under the terms of the agreements, SOHAR Freezone will host the primary PTA and PET production units, while SOHAR Port will manage bulk storage, feedstock handling and pipeline interfaces to ensure seamless material flows and high operational efficiency.

A suite of coordinated contracts - including a Sub-Usufruct Agreement for port lands, a Land Lease Agreement in the Freezone, and a long-term Product Supply Agreement with OQ - will govern the development and secure reliable feedstock availability.

Feedstock supply will be anchored through OQ, which will provide paraxylene (PX) as the key input for PTA production. Additional inputs such as monoethylene glycol (MEG) and acetic acid will be imported via SOHAR Port and transferred via dedicated pipeline connections, reducing truck traffic and enhancing health, safety, security and environmental performance.

Speaking on the occasion, Hojat Mohammadi Imir, CEO and shareholder of MAK Germany, described the project as a “major strategic milestone”, reflecting belief in Oman’s industrial prospects and SOHAR’s world-class infrastructure.

The facility is expected to have a combined production capacity of around 1.5 million tonnes of PTA and PET polymers, aimed at serving markets across the Middle East, Africa, Asia and Europe.

Emphasising the broader impact, Raid al Rubaiey, CEO of SOHAR Freezone, noted that the development directly supports Oman’s Vision 2040 goals by diversifying the economy, enhancing in-country value and accelerating export-oriented growth.

The project strengthens Oman’s downstream petrochemical industry and positions SOHAR Port and Freezone as a competitive destination for complex industrial projects, integrating manufacturing, logistics and energy within one cohesive industrial ecosystem.

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