Galfar will oversee the design, engineering, procurement, construction and commissioning of the pipeline project.

The contract entails the installation of a six-inch diameter pipeline, pumping facilities with a capacity to pump 60 cubic metres per hour of methanol product, isolation valves, safety relief valves, distributed control systems and fiscal metering facilities.

The pipeline project will allow the refinery to source its methanol requirements from OMC, which will be a cost-effective alternative to imported feedstock shipped by tankers.

The project is estimated to be completed within six months with the linkage expected to be in operation during the first quarter of 2012.

OmanOil RPI signed a contract last month that will pave the way for the revamp and expansion of its Sohar Refinery complex at an estimated cost of $1.5bn.

Under the contract, US-based international technology firm CB&I Lummus will undertake the front end engineering design and project management consultancy services package of the refinery expansion.

The expansion project to be completed by 2015 is expected to improve the refinery’s product quality and increase output by almost 60%, reports the Oman Observer.