Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Oman Industrial Salts market.
Trusted Business Insights presents an updated and Latest Study on Oman Industrial Salts Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Oman Industrial Salts market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Oman Industrial Salts Market
The Oman industrial salts market for oil and gas industry size was valued at USD 11.5 million in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 13.4% from 2021 to 2027. The demand for the product to carry out an efficient enhanced oil recovery option is likely to remain the key driver for the market growth over the forecast period 2021-2027.
The use of Enhanced Oil Recovery (EOR) technique to carry out efficient oil and gas operations in the country has widely influenced the growth of the market over the last few years. The use of brine with diluted salt content has been proven as an effective way to enhance oil operation efficiencies.
Omans drive to expand its oil production relies heavily on innovative technologies such as EOR. The key EOR techniques used in Oman include polymer, steam injection, miscible, and solar techniques. Due to the high cost of production and lack of technology in the country, the government of Oman offers tax rebates to International Oil Companies (IOCs) for exploration and development activities.
The government preludes foreign companies in new exploration and production projects, offering generous rebates for the development of fields that require the sophisticated technologies and expertise of the private vendors. The technical difficulties and challenges involved in oil production; the contract based arrangement for IOCs have become more popular in Oman than in other countries in the region.
In addition, PDO reported that by 2025, nearly 23% of the PDOs production is projected to come from EOR projects. Owing to such government-sponsored schemes and incentives, EOR is likely to play a major role in Omans oil and gas production over the coming years. Thereby, offering numerous opportunities for the market growth of industrial salts.
Product Insights: Oman Industrial Salts Market
Salt in brine segment led the Oman industrial salts market for oil and gas market and accounted for more than 52% revenue share in 2019. On the basis of product, the market is segmented into rock salt, salt in brine, and solar salt. Salt in brine product segment lead the market in terms of revenue as well as volume. Brine is acquired from huge waterbodies by dissolving mine deposits through a mining technique called solution mining. The product has a high concentration of saline solution. The product is prominently used by the oil and gas operators of Oman who engage in oil extraction work using the EOR technique.
Rock salt segment acquired a volume share of 35.2% in 2019. Rock salt occurs in the form of sedimentary evaporite minerals and is mined for industrial use. The demand for rock salt is expected to benefit from rising downstream oil and gas activities in the country. For instance, TheSohar Refinery Project capacity expansion was completed in 2017, expanding its capacity to 197,000 b/d from 116,000 b/d in previous years. Sohar refinery uses course and extra coarse rock salt to remove water from the finished product. Thus, factors such as the expansion of refineries along with steady production rates are likely to drive the segment growth over the forecast period.
Solar salt has a high purity level with sodium chloride content greater than 99.5%. The solar salt product segment accounted for a revenue share of 14.3%.The production of solar salt initiates when the salt brine is pumped into large outdoor ponds. These ponds are exposed to sunlight, and, hence, the product is called solar salt. The sunlight increases the temperature of the pond, which, in turn, results in the evaporation of water, leaving behind purified salt crystals that can be harvested.
Regional Insights: Oman Industrial Salts Market
The quantity of industrial salts imported for the Oman oil and gas industry was estimated at 66.9 kilotons in 2016 and the imports were witnessing a rising trend. Until 2018, the demand for industrial salts was met almost entirely through imports. The primary exporters of industrial salt to the country include Saudi Arabia and the UAE.
In July 2018, Global Integrated Engineering Company, a subsidiary of Al-Ghalbi International Engineering & Contracting, established Duqm Salt, an industrial salt plant, at Bentoot in the Wilayat of Mahout in Wusta Governorate. The plant was launched to meet the rising demand for industrial salt from Omans oil and gas sector, particularly from EOR operations and drilling operations in the oil wells of Oman.
The companys mission was to set up an industrial salts production plant to manufacture industrial salt from seawater as an alternative for import-substitute in the oil and gas industry of the country. The company, therefore, is localizing industrial salt production for Omans domestic consumption. Furthermore, the company, in line with its In-Country Value (ICV) commitments, is localizing its supply chain and product development activities in incremental stages.
According to the company, the plant spans over 1,700 square meters area with production estimated to be 100 kilotons per annum. The company intends to increase its production to about 200 kilotons in the near future. It mostly sells industrial salt products to the oil and gas industry of Oman and produces high purity (99.8%) industrial salts that meet the standards and specifications of domestic companies.
The company currently supplies its industrial salt products to Occidental Petroleum Corporation (Oxy) of Oman for steam operations and Petroleum Development Oman (PDO) for EOR operations. In 2019, Halliburton, a major oilfield services contractor, was expected to sign a supply agreement with Duqm Salt (Global Integrated Engineering Company) of 30 kilotons of industrial salts per year.
Key Companies & Market Share Insights: Oman Industrial Salts Market
The country has a couple of domestic manufacturers coupled with strong domination of regional traders or suppliers. The country also has an affirmative presence of regional suppliers from Saudi Arabia and UAE. The key vendors of the industry are continuously focusing their efforts to expand their production capacities in order to cater strong demand for the product, specifically from enhanced oil recovery activities in the country. Some of the prominent players in the Oman industrial salts for oil and gas industry include:
Key companies Profiled: Oman Industrial Salts Market Report
- Modern Salt Industries & Trading Co. LLC
- Duqm Salt
- Omanian Salt Company LLC
- Feiz New Works Company
- Al Mandoos Trading Co. LLC.
- Riyadh Salt Factory
- Delmon Salt
- Gulf Salt Company
This report forecasts revenue and volume growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the Oman industrial salts market for oil and gas industry report on the basis of product:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 – 2027)
- Rock Salt
- Salt in Brine
- Solar Slat
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